According to data obtained from the Consolidated Fund of Government, recurrent revenue for the first month of the year increased by €4.2 million, whilst total expenditure went down by €25.2 million, thereby narrowing the deficit between recurrent revenue and total expenditure by €29.4 million to €107.1 million.

During the month under review, recurrent revenue was recorded at €137.3 million from €133.1 million. The comparative increase of 3.2 per cent was mainly the result of higher returns from Income Tax (+€5.7 million), Value Added Tax (+€3.8 million) and Social Security (+€1.9 million).

Conversely, compared to January 2009, lower recurrent expenditure and lower spending on capital projects resulted in a decline in total expenditure of €25.2 million. Total expenditure in January 2010 amounted to €244.4 million.

Recurrent expenditure fell by €13.6 million, totalling €213.8 million. The largest decrease was recorded in programmes and initiatives by €8.2 million followed by contributions to government entities by €7.1 million. The decline in programmes and initiatives was mainly caused by lower outlays on the shipyards’ voluntary retirement scheme (-€17.3 million) and on medicines and surgical materials (-€10.1 million). These were partly offset by higher allocations in respect of local councils (+€7.5 million), energy support measures (+€2.7 million) and EU own resources (+€2.0 million). Outlays on personal emoluments added €1.6 million.

The interest component of the public debt servicing costs for the period under review registered an increase of €0.3 million and amounted to €18.1 million.

In addition, Government’s Capital Expenditure during January 2010 was recorded at €12.5 million from €24.4 million last year. This was caused by lower capital costs on Film Industry Incentives (-€4.7 million) and WasteServ Malta Ltd (-€3.6 million).

The Central Government debt outstanding at the end of January 2010 totalled €3,877.1 million, an increase of €295.2 million compared to January last year. Short-term and long-term borrowing rose by €43.6 million and €261.7 million respectively, while foreign borrowing declined by €13.6 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 €36.6 million, €4.3 million more compared to the euro coin stock as at end January 2009.

Permalink: Government shortfall decreases by €29.4 million to €107.1 million