By the end of Q1 2016, public debt was 442 billion euros, more or less equal to the end of 2015. As GDP over Q1 increased, the debt ratio declined by 0.3 percentage points to 64.8 percent of GDP. As a result, the debt-to-GDP ratio fell further towards the EU target of 60 percent of GDP.
Public deficit and public debt on an annual basis
More government revenue in Q1On an annual basis, public revenue totalled 294 bn euros, i.e. more than 1 bn euros above the total over 2015. Revenues from corporate tax, VAT and social contributions increased in particular, to 3 bn euros. Non-tax revenue declined by 2 bn euros, mainly due to lower revenue from natural gas.
Higher revenue from taxes and social contributions increased the burden imposed by taxes and social insurance contributions, measured as a percentage of GDP. The burden imposed by taxes and social insurance contributions has risen steadily over the past few years. Since 2014 the burden has been in excess of 37 percent, versus 34.5 percent in 2004.
With 305 bn euros, public expenditure was almost equal to 2015. The government spent less on goods and services; public investments were also below the level of the same quarter last year. Interest costs and government contributions to the European Union also decreased. Wages and benefits rose in Q1 2016.
Public revenue and public expenditure on an annual basis