The shortfall between recurrent revenue and total expenditure of Central Government for the first seven months of the year amounts to €283.5 million.

Data from the Government Consolidated Fund indicate that the shortfall between recurrent revenue and total expenditure for the first seven months of the year compared to the same period last year increased by €74.6 million and amounted to €283.5 million. An increase of €131.1 million in total expenditure was only partly offset by an increase of €46.5 million in recurrent revenue.

During the first seven months this year, the Consolidated Fund recorded increases in revenue of €26.7 million and of €24.4 million from Taxes on Income and from Value Added Tax respectively. Social Security Contributions also added €15.1 million during the period under review. At the same time, revenue from Licences, Taxes and Fines declined by €7.3 million while revenue classified under Miscellaneous Receipts declined by €10.0 million.

Recurrent expenditure amounted to €1,204.2 million, an increase of €129.1 million compared to the first seven months last year. Major increases in recurrent expenditure were recorded under Social Security Benefits, which added €35.1 million, while the Ministry of Health, the Elderly and Community Care and the Ministry for Investment, Industry and Information Technology added €29.9 million and €12.3 million respectively.

During the period under review the interest component of the public debt servicing costs amounted to €108.0 million, a comparative increase of €4.7 million over 2007.

Government’s outlay on its Capital Programme for the first seven months declined by €2.8 million and amounted to €132.4 million. During the period under review capital expenditure under the Ministry for Investment, Industry and Information Technology, and under the Ministry of Health, the Elderly and Community Care increased by €9.9 million and €9.3 million respectively. On the other hand, capital expenditure under the Ministry of Finance declined by €37.7 million.

Loans taken up by Government for the first seven months of the year amounted to €106.0 million.

The Central Government debt outstanding at the end of July amounted to €3,486.9 million, an increase of €159.6 million compared to the gross Central Government debt outstanding at the end of July last year. While long-term borrowing increased by €149.3 million, short-term borrowing and foreign borrowing declined by €11.2 million and €6.3 million respectively. At the end of July, 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 €28.3 million.

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