General government deficit decreased in January to March 2025

Central government's net borrowing grew by EUR 0.4 billion from the quarter one year ago

Central government total revenue at current prices grew by EUR 0.6 billion (3.1%) and total expenditure increased by EUR 1.1 billion (4.3%) from the quarter twelve months back.

The revenue items that grew most in monetary terms were income taxes and value added tax. The expenditure items that increased most were current transfers and gross fixed capital formation.

The difference between total revenue and total expenditure, that is, central government net borrowing, was EUR 4.7 billion in the first quarter of 2025.

Financial position of local government improved from the previous year

Total revenue of local government, excluding wellbeing services county administration, grew by EUR 0,7 billion (7.1%) and total expenditure by EUR 0,3 billion (3.9%) from the quarter twelve months back.

Total revenue of wellbeing services county administration grew by EUR 0,6 billion (7.8%), while total expenditure increased by EUR 0,2 billion (2.8%).

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In both sectors, current transfers received grew most in monetary terms of total revenue, and the expenditure item that increased most was wages and salaries paid. The combined surplus (net lending) of local government was EUR 3.1 billion in the first quarter.

Surplus of employment pension schemes grew from the quarter of one year ago

Employment pension schemes’ total revenue grew by EUR 0.4 billion (4.0%) and total expenditure increased by EUR 0.2 billion (2.3%) from the quarter twelve months back.

The revenue item that grew most in monetary terms was social contributions received. Of the expenditure items, pensions paid grew most in monetary terms. However, the growth rate of social security contributions paid has slowed down as a result of a more moderate increase in the earnings-related pension index. The financial position of employment pension schemes was EUR 0.4 billion in surplus in the first quarter of 2025.

Other social security funds in surplus

Other social security funds’ total revenue increased by EUR 59 million (1.1%) and total expenditure increased by EUR 49 million (0.9%) from the quarter twelve months back. '

The revenue item that grew most in monetary terms was social contributions received, which fell strongly in 2024 due to lowered sickness and unemployment insurance contribution rates. The expenditure item that increased most was other current transfers paid. Other social security fund’s surplus was EUR 0.3 billion in the first quarter of 2025.