Figures from the National Statistics Office today show that in the first eight months this year, the shortfall between recurrent revenue and total expenditure of Central Government amounted to €172.2 million, down by €103.1 million when compared to the corresponding period in 2010.

In January-August 2011, recurrent revenue increased by €93.8 million, while total expenditure registered a decline of €9.3 million, resulting in an improvement in the government deficit when compared to the corresponding period last year.

During the period under review, recurrent revenue stood at €1,603.7 million, up by 6.2 per cent over last year. The major increases were registered in Value Added Tax (+€44.9 million), Customs and Excise duties (+€30.1 million), Grants (+€18.8 million), and Social Security (+€16.6 million). Conversely, a reduction in proceeds was recorded from Income Tax (-€19.8 million).

Total expenditure stood at €1,776.0 million, down by €9.3 million when compared to the first eight months last year, as a result of lower outlays on capital expenditure. On the other hand, recurrent expenditure and interest payments recorded increases.

The increase of €12.8 million in recurrent expenditure was driven by higher spending on personal emoluments (+€6.7 million), social security state contribution (+€4.8 million), medicines and surgical materials (+€6.6 million) and public service obligations (+€3.7 million). These were partly offset by lower outlays on social security benefits (-€9.1 million).

Capital expenditure was recorded at €163.1 million, down from €189.7 million last year. The lower expenditure on capital projects, by €26.6 million, was due to the completion of the Malta South Sewage Infrastructure.

The interest component of the public debt servicing costs for the period under review increased by €4.5 million and reached €137.9 million.

At the end of August 2011, Central Government debt stood at €4,415.9 million, up by €169.3 million, or 4.0 per cent, over the corresponding period last year. This was the result of higher long-term borrowing, which added €375.6 million. On the other hand, short-term securities and foreign borrowing decreased by €197.6 million and €13.3 million respectively. The euro coins issued in the name of the Maltese Treasury went up by €3.9 million when compared to the euro coin stock as at the end of August 2010, and totalled €44.3 million.

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