In March 2021, the State Sector working balance is provisionally estimated at Euro 26,800 million, with a decrease by about Euro 5,500 million in comparison to the corresponding month of 2020 (+Euro 32,315 million). In the first quarter, the working balance is estimated at Euro 41,000 million, with an increase by about Euro 10,100 million with respect to the corresponding period of 2020. The updated estimate of the State Sector working balance in February 2021 is available on the State General Accounting Department website.
In comparison with the previuos year, the March 2021 State working balance benefited from the increase in fiscal revenues, as tax payers have started to pay taxes and social contributions differed in November and December 2020 in the context of the pandemic emergency.
On the expenditure side, the balance is affected by the higher payments by the Italian Social Security Institute (INPS) for social benefits to cope with the Covid-19 pandemic, and by higher payments by Central and Local Governments.
In March 2020, pensions through the postal channel were paid twice in a month according to the Civil Protection ordinance, which modified the payment calendar in order to avoid gatherings in front of the postal offices.
Interest expenditure on Government bonds have decreased by about 483 million euros.