In the euro area, total government revenue edged down slightly to 46.7 per cent of GDP from 46.8 per cent in the previous quarter, despite an increase of around €13 billion in seasonally adjusted revenue, as GDP growth outpaced revenue gains. The government expenditure rose to 49.9 per cent of GDP, up from 49.5 per cent, driven by an increase of about €32 billion in seasonally adjusted spending, Eurostat said in a press release.
Across the EU, government revenue remained unchanged at 46.3 per cent of GDP, even as seasonally adjusted revenue increased by around €25 billion. The government expenditure climbed to 49.5 per cent of GDP from 49.2 per cent in the second quarter, with total spending rising by approximately €39 billion.
Seasonally adjusted government deficit ratios in both the euro area and the EU rose to 3.2 per cent of GDP in Q3 2025, up from the previous quarter, according to Eurostat.
The increase was driven by government expenditure growing faster than revenue and GDP.
Despite higher seasonally adjusted revenues, spending increases pushed expenditure ratios higher.
Eurostat said the figures underline continued fiscal pressures across the bloc, as higher public spending continues to outpace revenue growth, pushing deficit ratios higher during the quarter.
Fibre2Fashion News Desk (SG)
