Figures issued by the National Statistics Office today show that in the first half of 2012, the shortfall between recurrent revenue and total expenditure of Central Government amounted to €284.3 million, an increase of €94.1 million compared to the corresponding period in 2011.

At the end of June, Central Government debt stood at €4,794.9 million, up by €361.4 million, or 8.2 per cent, over the corresponding period last year. This increase was the result of higher long-term borrowing, which added €505.0 million.

The increase in recurrent revenue of €62.9 million was outweighed by a rise in total expenditure of €157.0 million, widening the government deficit.

During January-June 2012, recurrent revenue stood at €1,203.5 million, a rise of 5.5 per cent over last year. The main contributors were Income Tax (+€56.3 million), Social Security (+€16.2 million), Miscellaneous Receipts (+€13.1 million) and Value Added Tax (+€10.6 million). These were partly offset by a decline in proceeds from Grants (-€26.3 million), Customs and Excise Duties (-€7.4 million) and the Central Bank of Malta (-€6.0 million).

Compared to 2011, total expenditure was recorded at €1,487.8 million, up by 11.8 per cent, as a result of higher outlays on all expenditure components.

Recurrent expenditure increased by €117.9 million, mainly due to added expenditure on Programmes and Initiatives by €74.1 million. The main contributors to higher Programmes and Initiatives were social security benefits (+€25.4 million), medicines and surgical materials (+€9.6 million), EU own resources (+€7.6 million), social security state contributions (+€5.1 million), which also feature as revenue, assistance to help the elderly live independently (+€3.5 million) and Mater Dei Hospital non-medical equipment (+€3.3 million). An increase in expenditure was also recorded in Contributions to Government Entities (+€22.5 million), Operational and Maintenance Expenditure (+€11.7 million), and Personal Emoluments (+€9.6 million).

In addition, Government’s Capital Expenditure for the period under review amounted to €156.4 million. When compared to the corresponding period in 2011, the increase of €34.4 million was mainly the result of an equity injection of €20.0 million to the national air carrier, an increase in EU funds related to the Ministry for Infrastructure, Transport and Communication (+€11.1 million) and higher investment incentives (+€3.7 million). These were partly outweighed by a drop of €5.0 million in the contribution towards the treasury clearance fund.

Moreover, during January-June 2012, the interest component of the public debt servicing costs recorded an increase of €4.7 million.

On the other hand, short-term securities and foreign borrowing declined by €81.1 million and €12.8 million respectively. Moreover, as a result of consolidation, higher holdings by government funds in MGSs resulted in a reduction of €54.2 million.

The euro coins issued in the name of the Maltese Treasury went up by €4.5 million when compared to the coin stock as at the end of June 2011, and totalled €47.0 million.

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