Italy's state sector deficit up by 3.4bn euros in August

MILAN: Italy posted a state sector budget deficit of 2.2 billion euros ($2.5 billion) in August, compared with a surplus of 1.2 billion euros a year earlier, the treasury said on Monday citing a delay in some tax payments to Sept. 30.

Higher pension spending also contributed to the 3.4 billion euro increase in Italy's state sector borrowing requirement last month.

By contrast, interest payments on Rome's high public debt fell by 800 million euros year-on-year.

Italy's state sector deficit for the first eight months of the year totalled 32.3 billion euros, down from 29.7 billion in January-August 2018.