The general Government deficit rose to almost €5.4 billion in the first three months of the year, widening as the liquidation of IBRC increased Government spending.

The deficit now represents 13.8 per cent of quarterly gross domestic product, and is almost €360 million more than the same period in 2012.

Revenue for the quarter rose year-on-year to €12.8 billion, from €11.9 billion in the prior year as increased taxes and social contributions were introduced. However, expenditure rose by almost €1.3 billion in the same quarter, to €18.1 billion, as the level of capital transfers increased and and interest expenditure rose.

General Government gross debt in the period was €204.1 billion, representing 125.1 per cent, some €11.6 billion higher than a year earlier. Net debt for the quarter was 95 per cent of GDP, or €154.9 billion.

The figures from the Central Statistics office also showed the Government’s net worth - which takes into account its non financial assets as well as financial assets less liabilities - continued to fall, reaching -€81.1 billion, from a negative figure of €77.2 billion at the end of 2012.