Budget revenue increased by 9% year-on-year in the first quarter of 2019 to EUR 2.36bn, while expenditure was up by 7.5% to EUR 2.56bn.

This puts the budget deficit for the first three months of the year at EUR 201.8m, down from EUR 217.9m in the same period last year.

While the government plans to end the year with a EUR 193.6m surplus, the ministry said that the figure for the first quarter was not worrying as a major part of interest and subsidies were paid at the beginning of the year.

Tax revenue was up by 8.5% to EUR 2.04bn. "This is, among other things, attributed to continuation of favourable trends in the economy, labour market and consumption," the ministry said in the press release.

Revenue from income tax was up by 14.8%, revenue from corporate income by 5.5%, and revenue from value added tax by 11.8%, while revenue from excise duties was down by 1.2%.

The state spent around EUR 402m to pay interest to domestic and foreign financial institutions in the first quarter, which is 12.6% less year-on-year.

The reduction is a consequence of active debt management, including conversion of US dollar bonds into euro bonds, the ministry explained.

The consolidated general government account, which in addition to the state budget includes the public pension and healthcare funds and municipal budgets, recorded EUR 4.52bn in revenue and EUR 4.69bn in expenditure in the first quarter.