Italy's state sector deficit down by 2.5bn euros in June

MILAN: The Italian state sector's deficit stood at 800 million euros  ($904 million) in June, sharply down from a year earlier thanks to an extraordinary dividend paid by state lender Cassa Depositi e Prestiti (CDP) and higher tax revenues.

The latest figure compares with a state sector deficit of 3.3 billion euros in June last year. The Treasury said tax revenues had increased by 700 million euros in June.

To drive down the budget deficit as Italy seeks to avoid  European Union disciplinary action over excessive debt, the Treasury also received 805 million euros in retained earnings from CDP.

In the first six months of the year Italy's state sector borrowing requirement totaled 33.4 billion euros, around 7.9 billion euros below the level of the first half of 2018.