World Economy

Italy Budget Surplus Shrinks

 Italy Budget Surplus Shrinks Italy Budget Surplus Shrinks

 Italy posted a state sector budget surplus of 5.1 billion euros ($6.1b) in December, sharply lower than the 15.58 billion euros posted in Dec. 2013, weighed down by lower tax revenues, higher payments of bills in arrears and debt servicing costs, Reuters reported. The Economy Ministry said the state sector budget deficit for the full year came to 76.8 billion euros, an improvement of more than 3.5 billion compared with the figure in 2013, tied to tighter spending. The Treasury said debt servicing costs were higher but it noted that in 2013 there were exceptional payments for a capital increase for the European Investment Bank and for funding support to the troubled Banca Monte dei Paschi di Siena.