|General Government Revenue and Expenditure|
|End of year||€m||% GDP||€m||% GDP||€m||% GDP||€m|
In 2016, the government deficit was €1.8 billion (-0.7% of GDP), an improvement on the 2015 deficit of €5 billion (-1.9% of GDP). The change was driven by an increase of 2.8% in government revenues to €72.6 billion in 2016 coupled with a 1.6% decrease in expenditure to €74.4 billion between 2015 and 2016 (Table 1).
The upward trend in tax and social contribution revenue continued in 2016 with increases of €2.1 billion (+4.2%) in Taxes and €0.6 billion (+5.0%) in Social contributions. There was also a once-off reimbursement of a prepaid margin (€555 million) on a loan from the European Financial Stability Facility (EFSF) recorded as a capital transfer in 2016 (see Background notes). These increases were partially offset by a reduction in Investment income of €0.9 billion (-32.9%) (Table 1).
Although total government expenditure fell in 2016, the comparison with 2015 is impacted by a once-off capital transfer of €2.1 billion in 2015. Excluding this item results in an increase of €0.8 billion in other expenditure categories being observed between 2015 and 2016. There were increases in Compensation of employees/Pay (+2.4%), Use of goods and services (+2.5%) and Gross fixed capital formation (+12.8%). Debt service costs, or Interest, continued to decrease in 2016 with a reduction of 9.6% (Tables 1 and 4).
In 2016, central government collected €69.3 billion (95%) of total revenue (Table 4). The balance was generated by local government in the form of commercial rates, social housing rents and other transfers (Table 8).
Central government spent €71.4 billion in 2016 (Table 4), resulting in a central government deficit of €2.1 billion. Local government recorded a surplus of €265 million in 2016 (Table 7). These balances combine to make up the general government deficit of €1.8 billion in 2016.
National accounts are compiled in the EU according to the European System of National Accounts 2010 (ESA2010) framework.
The Government Income and Expenditure (GIE) 2016 release is fully aligned with the National Income and Expenditure (NIE) 2016.
The changes to the previously published tables under the Excessive Debt Procedure in April 2017 reflect updated data sources which become available between the April and July publications as well as a change to methodology for the treatment of the sale of mobile phone licences - see Background Notes.