At the end of October 2011, Central Government debt stood at €4,384.6 million, up by €194.9 million, or 4.7 per cent, over the corresponding period last year. This was the result of higher long-term borrowing, which added €340.7 million. On the other hand, short-term securities and foreign borrowing decreased by €136.3 million and €13.2 million respectively. The euro coins issued in the name of the Maltese Treasury went up by €4.0 million when compared to the euro coin stock as at the end of October 2010, and totalled €44.5 million. These figures have been released from the National Statistics Office.

During the period under review, the shortfall between recurrent revenue and total expenditure of Central Government narrowed by €49.9 million and amounted to €289.6 million, when compared to the corresponding period in 2010.

In the first ten months this year, the increase of €91.3 million registered in recurrent revenue outweighed the rise of €41.4 million in expenditure, 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 €1,975.8 million, up by 4.8 per cent over last year. Higher returns were mainly registered from Value Added Tax (+€44.1 million), Social Security (+€28.6 million), Grants (+€22.3 million), and Customs and Excise duties (+€20.7 million). Conversely, a reduction in proceeds was recorded from Income Tax (-€31.4 million).

Total expenditure was recorded at €2,265.3 million, up from €2,224.0 million when compared to last year. These developments are the result of higher outlays on recurrent expenditure and interest payments. On the other hand, capital expenditure declined by 15.1 per cent.

The main contributors to the increase of €72.4 million in recurrent expenditure were, among others, Social Security Benefits (+€22.8 million), contributions to government entities (+€17.2 million), social security state contribution (+€8.1 million), personal emoluments (+€6.4 million), and medicines and surgical materials (+€4.4 million). Moreover, a higher administration fee to Transport Malta (+€3.4 million) and public service obligations (+€3.1 million) also added to recurrent expenditure.

Capital expenditure was recorded at €209.0 million. The lower expenditure on capital projects, by €37.3 million, was mainly due to the completion of the Malta South Sewage Infrastructure. Moreover, the contribution towards the Treasury Clearance Fund registered a fall of €11.4 million.

The interest component of the public debt servicing costs for the ten months under review went up by €6.3 million and amounted to €176.0 million.

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