According to data obtained from the Consolidated Fund of Government for the first month of the year, the shortfall between recurrent revenue and total expenditure increased by €73.7 million when compared to January 2008 and amounted to €136.5 million. Recurrent revenue decreased by €17.1 million, while total expenditure increased by €56.6 million.

In January the Consolidated Fund recorded decreases in income tax (-€11.0 million), Fees of Office (-€5.8 million), Social Security Contributions (-€2.9 million) and Grants (-€2.6 million). At the same time, revenues from Value Added Tax and Rents increased by €3.9 million and €2.1 million respectively.

Recurrent expenditure during the first month amounted to €227.4 million, an increase of €45.5 million compared to the same month last year. This increase was mainly brought about by increases on Social Security Benefits (+€14.5 million), the shipyards’ early retirement schemes (+€17.5 million) and expenditure on medicines and surgical materials (+€7.8 million). Other increases were recorded under the personal emoluments and operational and maintenance expenses categories, which increased by €2.2 million and €4.0 million respectively.

The interest component of the public debt servicing costs for January increased by €3.9 million and amounted to €17.8 million.

During the first month of 2009, Capital Expenditure amounted to €24.4 million, an increase of €7.2 million when compared to the expenditure of €17.2 million for January 2008. Main comparative increases were recorded for Film Industry Incentives (+€4.9 million) and WasteServ Malta (+€3.0 million).

The Central Government debt outstanding at the end of January amounted to €3,581.9 million, an increase of €322.8 million compared to January last year. Long-term and short-term borrowing increased by €201.1 million and €120.3 million respectively, while foreign borrowing declined by €7.0 million. 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 €32.3 million, an increase of €9.0 million over the same period last year

Permalink: Government shortfall up €73.7 million to €136.5 million