The latest NSO release on public finances shows a clear risk that the government is veering away from its original targets, with expenditure growing faster than revenue during the first five months of this year.
Earlier today, the NSO released its Consolidated Fund statistics showing that the government’s deficit reached €178 million by the end of May 2026, compared with €146.1 million during the same period last year. This means the deficit deteriorated by €31.9 million year-on-year.
Government expenditure reached €3.7 billion between January and May 2026, an increase of €549.4 million over the same period last year. Recurrent revenue also increased, reaching €3.52 billion, but rose by a smaller amount of €517.5 million. In percentage terms, expenditure rose by around 17.4%, while revenue increased by around 17.2%.
The biggest pressure came from recurrent expenditure, which increased by €369.6 million. Programmes and Initiatives accounted for the largest rise, increasing by €209 million. Within this category, social security benefits were one of the main drivers, rising by €73.6 million over the same period last year.
The figures show that the government is not suffering from weak revenue. It is collecting significantly more money. The problem is that it is spending even more, widening the deficit despite higher tax inflows.
| Period | Recurrent revenue | Total expenditure | Deficit |
|---|---|---|---|
| January–May 2025 | €3,009.6 million | €3,155.6 million | €146.1 million |
| January–May 2026 | €3,527.1 million | €3,705.1 million | €178.0 million |
| Change | +€517.5 million | +€549.4 million | Deficit worsened by €31.9 million |
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