The shortfall between recurrent revenue and total expenditure of Central Government for the first five months of the year amounts to €235.8 million. According to data obtained from the Consolidated Fund of government for the first five months of the year, the shortfall between recurrent revenue and total expenditure increased by €80.7 million, and amounted to €235.8 million when compared to the same period of 2007. An increase of €118.6 million in total expenditure was only partly offset by an increase of €37.9 million in recurrent revenue.

During the first five months this year, the Consolidated Fund recorded increases in revenue of €19.8 million and of €12.7 million from Taxes on Income, and from Value Added Tax respectively. Dividends on Investment also added €7.9 million during the period under review. At the same time, revenue from Licences, Taxes and Fines declined by €7.7 million while revenue classified under Miscellaneous Receipts declined by €7.2 million. Recurrent expenditure amounted to €857.8 million, an increase of €92.3 million compared to the first five months last year. Major increases in recurrent expenditure were recorded under Social Security Benefits which added €23.2 million. The Ministry of Health, the Elderly and Community Care and the Ministry for Rural Affairs and the Environment added €13.4 million and €10.3 million respectively.

During the period under review the interest component of the public debt servicing costs amounted to €85.5 million, a comparative increase of €4.7 million over 2007.

The Capital Programme for the first five months added €21.6 million and amounted to €108.1 million. During the period under review capital expenditure under the Ministry for Investment, Industry and Information Technology, and under the Ministry for Rural Affairs and the Environment increased by €14.6 million and €9.6 million respectively. On the other hand, capital expenditure under the Ministry of Finance declined by €17.1 million. No new loans were taken up during the period under review.

The Central Government debt outstanding at the end of May amounted to €3,317.6 million, an increase of €67.4 million compared to the gross Central Government debt outstanding at the end of May last year. While long-term borrowing increased by €98.9 million, short-term borrowing and foreign borrowing declined by €40.6 million and €6.4 million respectively. At the end of May, the euro coins issued in the name of the Maltese Treasury which are considered as a currency liability pertaining to the Central Government, amounted to €25.3 million ..

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