The shortfall between recurrent revenue and total expenditure of Central Government last year amounted to €279.2 million, down by €17.8 million compared to the preceding year.

Recurrent revenue advanced by €154.6 million, offsetting the rise of €136.8 million in total expenditure.

During the year under review, recurrent revenue stood at €2,525.4 million. The 6.5 per cent increase over 2009 was mainly triggered by higher returns from Income Tax (+€61.8 million), Value Added Tax (+€28.5 million) and Social Security (+€26.0 million). Other revenue items also registered improvements.

In 2010, total expenditure reached €2,804.6 million, up by 5.1 per cent as a result of greater outlay on recurrent and capital expenditures.

The main contributor to the increase in recurrent expenditure was Social Security Benefits, which went up by €69.5 million. Moreover, the reclassification of the Malta Tourism Authority (MTA) from capital to recurrent expenditure, amounting to €27.8 million, and the budgetary compensation in respect of Energy Support Measures of €12.3 million, added to recurrent expenditure. On the other hand, declines were recorded in expenditure on the shipyards’ voluntary retirement schemes and on medicines and surgical materials, of €17.8 million and €12.4 million respectively. Personal emoluments added €28.0 million compared to the preceding year.

Capital expenditure rose by €40.1 million. This was mainly due to increases related to the Malta South Sewage Treatment Infrastructure of €30.2 million and structural funds related to education of €22.3 million. An outlay of €10.0 million in connection with the introduction of the Jeremie Financial Engineering Fund was also made. Furthermore, an additional €10.8 million was transferred to the Treasury Clearance Fund. The reclassification of the MTA compensated in part for the increases.

The interest component of the public debt servicing costs for the year under review rose to €196.8 million.

As at December 2010, Central Government debt stood at €4,169.9 million, a rise of €283.0 million, or 7.3 per cent compared to 2009. The increase in government debt was the result of higher long-term borrowing, which added €387.3 million. On the other hand, short-term securities and foreign borrowing declined by €96.4 million and €12.9 million respectively. The euro coins issued in the name of the Maltese Treasury rose by €3.8 million when compared to the coin stock as at the end of 2009, and totalled €41.0 million.

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