ROME (Reuters) - Italy's public budget deficit widened in the first nine months of 2014 to 3.7 percent of gross domestic product, compared with 3.4 percent in the same period of 2013, official statistics agency ISTAT said on Friday.
The data puts pressure on Matteo Renzi's government which has a 2014 deficit target of 3.0 percent of GDP, bang on the European Union's limit. The 2013 full year deficit came in at 2.8 percent.
The widening of the deficit in the January to September period was due to a 0.7 percent annual decline in revenues, while public spending was flat in the same period.
In the third quarter, the deficit amounted to 3.7 percent of GDP, up from 3.4 percent in Q3 2013.
This year the deficit is targeted to fall to 2.6 percent, but the European Commission is concerned that Italy's 2015 budget does not do enough to rein in the country's massive public debt.
In the third quarter revenues rose 0.4 pct year on year, while public spending increased 0.8 percent.
ISTAT gave the following quarterly public finance data.