In April 2022, the State Sector working balance is provisionally estimated surplus of Euro 6,000 million, with an improvement of about Euro 18,600 million in comparison to the corresponding month of 2021 (Euro -12,625 million).
In the first four months of the current year, the working balance is estimated at Euro -24,000 million, with an improvement of about Euro 29,700 million with respect to January-April 2021 (Euro -53,776 million).
The updated estimate of the State Sector working balance in March 2022 is available on the State General Accounting Department website.
Comment
Compared to the previous year, the improvement in the State working balance in April 2022 is mainly due to the grant component of the EU recovery funds.
The fiscal revenues have shown a positive dynamics linked to the increase in indirect taxes – VAT and excise duties – and in social contributions.
On the expenditure side, payments by Central and Local administrations have declined, mainly reflecting the phase out of the subsidies paid by the Revenue Agency and by the Extraordinary Commissioner, as foreseen by the laws enacted in response to the Covid pandemic.
The interest expenditure on Government bonds has decreased by about Euro 150 million with respect to April 2021.