In the first quarter of 2010, the shortfall between recurrent revenue and total expenditure of Central Government improved by €42.4 million to €222.6 million when compared to the corresponding period last year.

Finance Data: January-March 2010

The data obtained from the Consolidated Fund of Government shows a rise in recurrent revenue of €23.5 million and a drop in total expenditure of €18.8 million, thus lowering the government deficit to €222.6 million.

During the period under review, recurrent revenue was recorded at €451.5 million. The comparative increase of 5.5 per cent was triggered by higher returns from Income Tax (+€22.7 million) and from Value Added Tax (+€14.6 million). On the other hand, declines in recurrent revenue were registered in Licenses, Taxes and Fines (-€5.5 million), Social Security (-€3.9 million) and Customs and Excise Duties (-€3.2 million).

Compared to January-March 2009, total expenditure stood at €674.1 million, down by 2.7 per cent as a result of lower interest payments and recurrent expenditure.

Notwithstanding a higher expenditure on Social Security Benefits of €15.2 million, and the reclassification of the Malta Tourism Authority (which shifted €13.0 million from capital to recurrent expenditure), recurrent expenditure went down by €2.1 million, totalling €577.8 million. These expenditures were outweighed by lower outlays on the shipyards’ voluntary retirement schemes (-€16.9 million), medicines and surgical materials (-€13.3 million) and streets and roads lighting (-€5.9 million).

Capital expenditure edged up by €0.9 million. The reclassification of the Malta Tourism Authority was offset by higher expenditure on the Malta South Sewage Treatment Infrastructure (+€9.1 million), the EU Agricultural Guarantee Fund (+€3.4 million) and the EU Agricultural Fund for Rural Development (€2.0 million).

The interest component of the public debt servicing costs was €17.6 million lower than that for the comparable period in 2009 and stood at €47.2 million.

At the end of March 2010, the Central Government debt outstanding increased by €336.4 million to €3,985.2 million, compared to the corresponding month last year. Long-term borrowing edged up by €354.5 million whereas short-term securities fell by €7.8 million. Concurrently, foreign borrowing declined by €13.2 million. The euro coins issued in the name of the Maltese Treasury totalled €36.9 million, up by €4.2 million when compared to the euro coin stock as at the end of March 2009.

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