In January the shortfall between recurrent revenue and total expenditure of Central Government amounted to €90.1 million, down by €17.0 million.

According to data obtained from the Consolidated Fund of Government, recurrent revenue for the first month of the year went down by €1.7 million, while total expenditure declined by €18.7 million, thereby narrowing the deficit between recurrent revenue and total expenditure from €107.1 million to €90.1 million.

During the month under review, recurrent revenue was recorded at €135.6 million, down from €137.3 million last year. The comparative decline of 1.2 per cent was mainly the result of lower returns from Social Security (-€7.3 million) and Value Added Tax (-€4.1 million).

These declines were partly outweighed by increases in other revenue components. Conversely, compared to January last year, lower recurrent expenditure and lower spending on capital projects resulted in a decline in total expenditure of €18.7 million, to €225.7 million. Recurrent expenditure fell by €15.7 million, totalling €198.1 million. Both operational and maintenance expenditure and programmes and initiatives declined by €6.9 million. The drop in programmes and initiatives mainly reflected a fall of €9.3 million in social security benefits, €2.7 million in energy support measures and €1.6 million in EU own resources. These were partly offset by higher expenditure with regard to street lighting (+€4.0 million) and medicines and surgical materials (+€3.2 million). Moreover, the contributions to government entities went down by €3.2 million whereas the outlays on personal emoluments added €1.3 million.

The interest component of the public debt servicing costs for the period under review was registered at €17.9 million from €18.1 million last year.

In addition, Government’s Capital Expenditure during January 2011 was recorded at €9.7 million from €12.5 million last year. This was mainly caused by lower expenditure on the EU Agricultural Fund for Rural Development (-€2.1 million).

The Central Government debt outstanding at the end of January totalled €4,227.8 million, up by €350.7 million compared to January last year. Long-term borrowing rose by €387.3 million, while short-term borrowing and foreign loans declined by €28.8 million and €13.0 million respectively. 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 €40.6 million, €4.0 million more compared to the coin stock as at end January 2010.

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