According to data released by BoG, central government cash deficit (i.e. net balance of the state budget including movements in public debt management accounts) stood at €6.4bn in the first eight months of the year from €18.6bn last year, down 65.8% y-o-y, while August recorded a surplus of €0.8bn from deficit of €3.6bn last year.

During Jan – Aug ‘12, ordinary budget revenues eased 1.6% y-o-y to €30.6bn, while August revenues soared by 21.4% y-o-y to €4.6bn. Expenditure retreated 23.0% y-o-y to €36.8bn, with August expenditure at €4.2bn, down 39.6% y-o-y. Furthermore, interest payments slipped 52.6% y-o-y to €6.0bn.

It is noteworthy that primary deficit of the state budget stood at just €0.3bn in 8M’12, down 92.3% y-o-y, with August primary balance recording a surplus of €1.75bn from deficit of €35m last year.

Although BoG figures are not comparable with those of MoF, I anticipate that they predispose a further positive evolution of budget execution in 8M’12, particularly on the revenue front.