The data released on 21 January by Eurostat, the EU statistical office, show significant decreases in the deficits compared to the second quarter of 2021, even as the deficits remained at a high level compared to the pre-pandemic period. The deficit to GDP ratio decreased due to increases in total revenue, decreases in total expenditure as well as due to a higher GDP in comparison with the second quarter of 2021. Total revenue and total expenditure continued to be influenced by policy responses to the COVID-19 pandemic. In the third quarter of 2021, most Member States continued to record a government deficit. Total euro area government revenue in the third quarter of 2021 amounted to 47.0% of GDP, an increase compared with 46.8% in the second quarter of 2021. Seasonally adjusted total revenue in the euro area increased by around €53 billion compared with the second quarter of 2021. Total government expenditure in the euro area stood at 51.0% of GDP, a decrease in the ratio compared with 53.2% in the previous quarter. Seasonally adjusted total government expenditure decreased by around €14 billion compared with the second quarter of 2021. In the EU, total government revenue was 46.5% of GDP in the third quarter of 2021, stable compared with the second quarter of 2021. Total government expenditure in the EU was 50.2% of GDP, a decrease compared with 52.3% of GDP in the previous quarter.