The general government generated a fiscal deficit of €138.4m in the second quarter after posting a €200.9m surplus in the quarter before, the statistical service said.
The deficit was on a 6.7 per cent annual increase in spending in April to June to almost €1.8bn which an 11 per cent increase in revenue to over €1.6bn was unable to offset, Cystat said in a statement on its website on Monday.
In the second quarter of 2016, the government posted a €188.7m deficit.
Revenue on production and imports rose an annual 13 per cent to €710.9m in the second quarter and included €407.9m in value added tax revenue which rose 9.6 per cent, Cystat said. Social security contributions rose 9 per cent to €401.3m and revenue from the sale of services rose 26 per cent to €147.5m, while revenue from income and wealth dropped 8.1 per cent to €259.9m.
Social transfers and pensions rose an annual 4.4 per cent in April to June to €685.8m, staff cost 6.7 per cent to 558.3m and intermediate consumption rose 30 per cent to €178m, Cystat said.