According to data obtained from the Consolidated Fund of Government for the first half of this year, the shortfall between recurrent revenue and total expenditure increased by €80.1 million when compared to the same period of 2007, and amounted to €256.3 million. An increase of €137.8 million in total expenditure was only partly offset by an increase of €47.7 million in recurrent revenue.

During the first half of 2008, the Consolidated Fund recorded increases in revenue of €26.2 million and of €16.1 million from Taxes on Income and from Value Added Tax respectively. Social Security Contributions also added €12.1 million during the period under review. At the same time, revenue from Licences, Taxes and Fines declined by €6.5 million while revenue classified under Miscellaneous Receipts declined by €9.9 million.

Recurrent expenditure amounted to €1,033.6 million, an increase of €123.2 million compared to the first six months last year. Major increases in recurrent expenditure were recorded under Social Security Benefits which added €38.5 million. Expenditure under the Ministry of Health, the Elderly and Community Care and the Ministry for Investment, Industry and Information Technology added €19.7 million and €10.2 million respectively.

During the period under review the interest component of the public debt servicing costs amounted to €93.6 million, a comparative increase of €4.1 million over the first half of 2007.

The Capital Programme for the first six months this year added €10.5 million and amounted to €119.5 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 €13.9 million and €10.2 million respectively. On the other hand, capital expenditure under the Ministry of Finance declined by €28.7 million.

New loans were taken up by Government for the first six months this year (all taken up in June) amounted to €106.0 million.

The Central Government debt outstanding at the end of June amounted to €3,468.8 million, an increase of €131.2 million compared to the gross Central Government debt outstanding at the end of June last year. While long-term borrowing increased by €149.4 million, short-term borrowing and foreign borrowing declined by €38.0 million and €6.4 million respectively. At the end of June, 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 €26.7 million ..

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