The shortfall between recurrent revenue and total expenditure of Central Government for the first half of the year amounted to €337.5 million, an increase of €81.1 million.
According to data obtained from the Consolidated Fund of Government, recurrent revenue exhibited a decline of €21.2 million whereas an increase in total expenditure of €60.0 million was recorded. During the period under review, the shortfall between recurrent revenue and total expenditure amounted to €337.5 million, up by €81.1 million or 31.6 per cent over the comparative period last year.
During January-June 2009, recurrent revenue amounted to €969.2 million. This decline was brought about by lower Customs and Excise duties (-€34.2 million) and Value Added Tax (-€15.6 million) which outweighed the higher returns from Income Tax (+€20.9 million) and Social Security (+€11.3 million).
The increase in total expenditure, from €1,246.7 million in the first half of 2008 to €1,306.7 million in the comparable period of 2009, was mainly caused by increases in the components of recurrent expenditure. Recurrent expenditure amounted to €1,089.9 million, an increase of €56.4 million or 5.5 per cent over the relative period last year, mainly due to higher expenditure on social security benefits (+€22.2 million), the shipyards’ voluntary retirement schemes (+€19.1 million) and medicines and surgical materials (+€9.3 million). Other increases were recorded under the personal emoluments and operational and maintenance expenditure categories, which increased by €8.9 million and €7.1 million respectively.
The interest component of the public debt servicing costs for the period under review increased by €3.0 million and amounted to €96.7 million.
Government’s Capital Expenditure for the first half of the year amounted to €120.1 million, a marginal increase from the €119.5 million recorded last year.
The Central Government debt outstanding at the end of June amounted to €3,820.4 million, an increase of €351.6 million compared to June last year. Short-term and long-term borrowing advanced by €224.5 million and €132.3 million respectively, while foreign borrowing declined by €13.8 million. The euro coins issued in the name of the Maltese Treasury, which are considered as a currency liability pertaining to the Central Government, amounted to €34.9 million, an increase of €8.2 million over the euro coin stock as at end June last year.