Sharp drop in government deficit

The government deficit for the second quarter this year amounted to €69.4 million, down from €90.9 million in the comparable period last year, the NSO said today. During April-June 2012, total revenue stood at €654.8 million, an increase of €60.4 million when compared to the second quarter of 2011. The main contributors were 'current taxes on income and wealth' (+€45.1 million) and 'taxes on production and imports' (+€9.5 million). Other increases were recorded in 'social contributions receivable' (+€3.5 million), 'current transfers receivable' (+€2.2 million) and 'property income receivable' (+€1.5 million). Conversely, 'market output' declined by €2.0 million. Total expenditure in the second quarter amounted to €724.2 million.  'Socialbenefits and social transfers in kind' went up by €31.4 million. Higher outlays were recorded on 'intermediate consumption' (+€12.2 million), 'compensation of employees' (+€9.6 million), 'current transfers payable' (+€6.7 million), 'capital transfers payable' (+€4.9 million) and 'property income payable' (+€4.0 million). These were partially offset by lower expenditure on 'gross capital formation'(-€28.9 million) and 'subsidies payable' (-€1.0...