During the first two months this year, the shortfall between recurrent revenue and total expenditure of Central Government amounted to €150.7 million, an increase of €50.8 million compared to the corresponding period in 2011.
The increase in recurrent revenue of €36.9 million was outweighed by a rise in total expenditure of €87.7 million, widening the government deficit.
Recurrent revenue for the first two months this year stood at €362.6 million, a rise of 11.3 per cent over last year. The main contributor was Income Tax, which generated higher returns by €34.6 million. Other improvements were registered in Social Security (+€9.3 million) and Licenses, Taxes and Fines (+€3.9 million). These were partly offset by a fall in proceeds from Customs and Excise Duties (-€5.3 million) and from the Central Bank of Malta (-€4.0 million).
Compared to 2011, total expenditure was recorded at €513.3 million, up by 20.6 per cent, as a result of higher outlays on the main expenditure categories.
Recurrent expenditure registered an increase of €51.9 million, driven by higher social security benefits and contributions to government entities, which added €13.9 million and €19.3 million respectively. Moreover, increases were also recorded in Operational and Maintenance Expenditure (+€5.2 million), Personal Emoluments (+€4.5 million), and EU Own Resources (+€1.8 million).
In addition, Government’s Capital Expenditure for the period under review reached €57.3 million, up from €22.5 million last year. This was mainly driven by an equity injection of €20.0 million to the national air carrier. Moreover, additional expenditure was recorded in investment incentives by €2.8 million, PC leasing by €2.7 million and the acquisition of public property by €1.9 million.
Concurrently, the interest component of the public debt servicing costs for the period increased by €1.1 million.
At the end of February Central Government debt stood at €4,699.1 million, up by €371.1 million, or 8.6 per cent, over the corresponding period last year. This increase was the result of higher long-term borrowing, which added €610.8 million.
On the other hand, short-term securities and foreign borrowing declined by €231.2 million and €13.1 million respectively. The euro coins issued in the name of the Maltese Treasury went up by €4.6 million when compared to the coin stock as at the end of February 2011, and totalled €45.0 million.