Cala deficit in the second quarter, down borrowing costs – The Republic

Milan – The first signs of economic recovery and spending cuts reduce the deficit in the second quarter GDP and bring the primary surplus (the positive difference between revenues and expenditures of the state net of interest payments on public debt) to 4.2% of gross domestic product. Including the interest we pay on the debt, the surplus becomes a deficit (a negative) that total was 0.9% down, however, by 0.2 percentage points over the same period of 2014. In the first six months of ‘year, Istat records a net debt of 3.2% of GDP (3.5% last year) is the lowest figure since 2007.

Tax burden. Of April and June, the weight of the Treasury amounted to 43.2%, down 0.1 percentage points compared to the same period last year. For all the first six months, the value is the same of 2014 to 41.1%.

Primary balance. Overall, the primary balance in the second quarter was positive for 17.029 billion (17.094 billion in the same quarter of 2014), while the current balance (savings) is positive result for 11.862 billion, an increase of 1,103 million. As a percentage of GDP was 2.9%, compared with 2.7% in the second quarter of 2014. Overall, in the first two quarters of 2015 the current account balance relative to GDP was positive and amounted to 0.1 % (-0.2% in the corresponding period of 2014).

Revenue. Overall mark a rise of 0.7% year on year, thanks to the push came from direct taxes (+ 0.3%), but mainly by indirect (+ 2.6%), such as those affecting consumption, including the VAT. Descend instead the capital taxes.

Exit. The interest expenses on the debt in the second quarter fell by 3.5% annually, or 746 million Euros. The notes Istat, that looking at the entire first half was down even more strongly (-8.1%). Also reduction in outlays for compensation of employees (-1% the quarter, down 0.8% on the first half). Overall in the second quarter of the total expenditure increased by 0.3% on-year, driven by intermediate consumption and the social benefits in cash. In the second quarter of 2015 the outputs dedicated to the gross fixed capital formation rose by 4.8% year on year, rising to 9.1 billion from 8.7 billion euro in the same period of 2014 (+418 million).

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surplus primary

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