Public deficit reached 3.4% of GDP during the first semester of 2011, compared to 2.5% during the same period in 2010, according to data released on Friday by the Statistical Service. The total deficit for the first semester of 2011 reached 626.5 million euros.

The latest figures of the Quarterly Accounts of General Government show that during the second quarter of 2011, the deficit stood at 315.8 million euros, compared to 326 million in the corresponding period of 2010.

In comparison to the first quarter of 2010, state expenditure for the period April-June 2011 rose by 2.5% concerning compensation of employees, operational expenses declined by 2.1%, while social transfers went up by 1.6%. Moreover, state revenue from current taxes on income and wealth rose by 24.3%, from taxes on production up by 3.1%, of which VAT revenue rose by 2.1%, while social contributions revenue declined by 2.4%.

Total state revenue amounted to 1 billion 655.6 million euros, marking a 4.2% increase compared to the corresponding period of 2010, while total expenditure reached 1 billion 971.4 million, increased by 3%.