General government total revenue increased by 10.6% in 2021 (+9.2 billion euro) and the current revenue increased by 8.9% (nearly, +7.7 billion euro). The three main current revenue components increased at different paces, with the most significant rise belonging to taxes on production and imports (11.0%).
Total expenditure increased by 3.8% between 2020 and 2021. This growth was the joint result of an increase in current expenditure (+5.1%) and a decrease in capital expenditure (-8.3%). The increase in current expenditure was mainly due to the 4.3% growth in the compensation of employees and to the 3.5% growth in social benefits, other than social transfers in kind. In the opposite direction, there was a reduction of 10.7% in interest payments. Capital expenditure decreased by 8.2% in 2021 due to a lower amount of capital transfers, given that gross capital formation increased by 16%.
In 2021, the GG sector presented a net borrowing of 6 215 million euro in 2021, corresponding to -2.9% of GDP (-5.8% in 2020 and +0.1% in 2019).