Italy July budget surplus shrinks slightly vs July 2017: Treasury

[ROME] Italy posted a state sector budget surplus of around 10.6 billion euros (S$16.84 billion) in July, slightly lower than the surplus of 11.3 billion euros recorded in the same month last year, the Treasury said on Wednesday.

Italy normally posts a budget surplus in July due to the revenue from mid-year tax returns.

In the first seven months of this year, the cumulative budget deficit amounted to 30.7 billion euros, some 9.4 billion euros less than in the same period of 2017, the Treasury said.

The state sector borrowing requirement (SSBR), a measure of the gap between central government spending and income, differs from the broader "general government" accounts, which the European Union Stability and Growth Pact refers to when assessing countries' deficit performances.

Italy aims to cut its general government deficit this year to 1.6 per cent of gross domestic product from 2.3 per cent last year, well inside the European Union's 3 per cent ceiling.

REUTERS