In August 2021, the State Sector working balance shows a provisionally estimated surplus of Euro 9,100 million, with an improvement of about Euro 13,000 million in comparison to the corresponding month of 2020 (Euro -3,884 million). In the first eight months of the current year, the working balance is estimated at Euro 70,100 million, with an improvement of about Euro 36,200 million with respect to the corresponding period of 2020 (Euro 106,310 million). The updated estimate of the State Sector working balance in July 2021 is available on the State General Accounting Department website.
Compared to the previous year, the improvement in August 2021 State working balance is mainly due to the 13% advance payment received by the EU for Recovery Fund grants, as well as to higher revolving funds for community policies. The positive effect on the revenue side is partially offset by the increase of the Central Government expenditure, which includes payments for the cashback reward program, and of the disbursements by social security institutions.
Interest expenditure on Government bonds have increased by about Euro 400 million.