Government deficit rises to €8 billion in first half of 2026

In the first half of 2025, the deficit was still nearly €5 billion. The deficit in 2026 is the largest for a first half-year since 2021. That comparison covers only the first six months of each year. [1]

The government spent a total of €273 billion, 5 per cent more than in the same period of 2025. Revenue stood at €265 billion, an increase of 4 per cent.

Nearly half of spending went on social benefits. The government spent €8 billion more on these than a year earlier. Contributions to the European Union also increased, by nearly €2 billion.

On the revenue side, CBS says growth came mainly from wage and income tax levies and VAT. These brought in an additional €5 billion and €2 billion respectively. Not all tax receipts rose: corporation tax revenue fell by €1 billion to €28 billion. [1]

Debt remains unchanged despite deficit

The deficit did not lead to higher reported government debt. At the halfway point of 2026, debt stood at €524 billion, the same rounded amount as at the end of 2025. According to CBS, this was mainly because the government had already borrowed money at the end of 2025 which it used to pay for some of its spending in early 2026.

As a percentage of gross domestic product, however, debt fell: from 44.7 per cent at the end of 2025 to 43.7 per cent halfway through 2026. CBS attributes this to economic growth. Compared with a year earlier, however, this debt ratio was higher: halfway through 2025 it stood at 43 per cent. [1]