The shortfall between recurrent revenue and total expenditure of Central Government for the first seven months this year amounted to €368.6 million, an increase of €85.1 million.

According to data obtained from the Consolidated Fund of Government, during the period under review recurrent revenue exhibited a decline of €16.0 million, whereas an increase of €69.1 million was recorded in total expenditure. Hence, the deficit between recurrent revenue and total expenditure amounted to €368.6 million, an increase of €85.1 million over the comparative period last year.

During January-July 2009, recurrent revenue amounted to €1,145.2 million. The decline of 1.4 per cent was brought about by lower Customs and Excise duties (-€40.3 million) and Value Added Tax (-€13.5 million) which outweighed the higher returns from Income Tax (+€21.0 million) and Social Security (+€10.9 million).

Conversely, when compared to the same period in 2008, all the expenditure categories registered increases, resulting in higher total expenditure by €69.1 million.

Recurrent expenditure exhibited an increase of €54.3 million, totalling €1,258.5 million, as a result of higher spending in all its components, mainly programmes and initiatives. The increase in the latter constituted higher social security benefits (+€24.6 million), the shipyards’ voluntary retirement schemes (+€19.4 million) and medicines and surgical materials (+€4.7 million) which were partly offset by a fall in energy support measures (-€20.8 million).

The interest component of the public debt servicing costs for the period under review increased by €8.3 million and amounted to €116.3 million.

Government’s Capital Expenditure for the first seven months this year amounted to €139.0 million from €132.4 million last year, an increase of €6.5 million, or 4.9 per cent.

The Central Government debt outstanding at the end of July amounted to €3,876.6 million, an increase of €389.7 million compared to July last year. Short-term and long-term borrowing increased by €154.9 million and €240.8 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 €35.7 million, an increase of €7.5 million over the euro coin stock as at end July last year.

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