By Liam Moloney

Italy's cash budget deficit widened sharply in October, the treasury said late Friday, citing preliminary figures, mainly as a result of the country's multi-billion-euro payment to Europe's new permanent bailout facility.

The treasury said the sector-state budget requirement, or SSBR--a cash-based measure of the budget deficit--jumped to 13.1 billion euros ($17.0 billion) in October from EUR1.9 billion a year earlier.

In a statement, the treasury said the deficit surge was mainly the result of Italy making a payment of EUR5.7 billion into the European Stability Mechanism.

The deficit was also the result of skipped revenues worth about EUR2.8 billion from the lack of assigning radio licenses over broadband, it said.

In the first 10 months of this year, the SSBR was about EUR58.5 billion, compared with EUR60.9 billion in the year-earlier period.

Write to Liam Moloney at liam.moloney@dowjones.com