During the first two months this year, the shortfall between recurrent revenue and total expenditure of Central Government amounted to €99.9 million, a decline of €54.9 million compared to the corresponding period in 2010.

Recurrent revenue registered an increase of €33.8 million, whereas total expenditure went down by €21.1 million, resulting in a drop in government deficit.

Recurrent revenue for the first two months this year stood at €325.7 million, a rise of 11.6 per cent over last year. The main contributor was Value Added Tax, which generated higher returns, by €38.2 million. Other improvements were registered in Customs and Excise Duties (+€8.5 million) and Social Security (+€6.6 million). These were partly offset by a fall in proceeds from Income Tax (-€30.6 million).

Compared to 2010, total expenditure was recorded at €425.6 million, down by 4.7 per cent, as a result of lower outlays on the main expenditure categories. A €12.1 million decrease in recurrent expenditure was driven by lower social security benefits and operational and maintenance expenditure, which went down by €8.6 million and €7.4 million respectively. The contribution to government entities declined by €4.4 million. These were partially outweighed by higher expenditure on street lighting (+€4.0 million) and medicines and surgical materials (+€3.2 million). Additionally, personal emoluments advanced by €1.7 million.

Capital expenditure declined by €6.5 million. This reflects the completion last year of the Malta South Sewage Treatment Infrastructure, which registered an outlay of €6.5 million in JanuaryFebruary 2010.

Concurrently, the interest component of the public debt servicing costs for the period under review fell by €2.5 million.

At the end of February Central Government debt stood at €4,328.0 million, up by €389.1 million, or 9.9 per cent over the corresponding period last year. This increase was the result of higher long-term borrowing, which added €455.9 million. On the other hand, short-term securities and foreign borrowing declined by €58.7 million and €13.1 million respectively. The euro coins issued in the name of the Maltese Treasury went up by €3.8 million when compared to the coin stock as at the end of February 2010, and totalled €40.4 million.

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