General government deficit decreased by EUR 0.8 billion in April to June 2025

Central government's net borrowing grew by EUR 0.8 billion from the quarter one year ago

Central government total revenue at current prices grew by EUR 0.2 billion (0.7%) and total expenditure increased by EUR 1.0 billion (4.2%) from the quarter twelve months back.

The revenue items that grew most in monetary terms were property income and value added tax accrued. The revenue item that decreased most was income taxes. 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 2.9 billion in the second quarter of 2025.

Local government finances improved – spending by wellbeing services counties decreased

Total revenue of local government, excluding wellbeing services county administration, grew by EUR 504 million (5.9%) and total expenditure by EUR 381 million (4.4%) from the quarter twelve months back.

Total revenue of wellbeing services county administration grew by EUR 704 million (8.7%), while total expenditure decreased by EUR 38 million (-0.5%).

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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 one billion in the second quarter.

Financial position of social security funds improved

Employment pension schemes’ total revenue grew by EUR 0.6 billion (6.7%) and total expenditure increased by EUR 0.2 billion (2.8%) from the quarter twelve months back.

The revenue item that grew most in monetary terms was property income. 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 nearly EUR one billion in surplus in the second quarter of 2025.

Other social security funds’ total revenue increased by EUR 279 million (5.8%) and total expenditure decreased by EUR 117 million (-2.2%) from the quarter twelve months back.

The revenue item that rose most in monetary terms was social contributions received. The expenditure item that decreased most in monetary terms was social contributions paid. However, total expenditure was higher than revenue and the deficit of other social security funds was EUR 0.1 billion in the second quarter of 2025.