According to data obtained from the Consolidated Fund of Government, the shortfall between recurrent revenue and total expenditure increased by €54.9 million when compared to the corresponding period of 2008 and amounted to €265.0 million. Recurrent revenue decreased by €24.1 million, while total expenditure increased by €30.8 million.

During the first three months of the year, the Consolidated Fund recorded decreases in Value Added Tax (-€10.8 million), Customs and Excise Duties (-€10.5 million), Dividends on Investment (-€8.2 million), Fees of Office (-€7.0 million) and Income Tax (-€4.3 million). At the same time, revenue from Social Security Contributions increased by €18.6 million.

Recurrent expenditure amounted to €579.9 million, an increase of €59.4 million over the comparative period last year. The increase was mainly brought about by increases in expenditure on social security benefits (+€18.3 million), the shipyards’ voluntary retirement schemes (+€18.0 million) and on medicines and surgical materials (+€11.9 million). Other increases were recorded under the personal emoluments and operational and maintenance expenditure categories, which increased by €2.8 million and €10.0 million respectively.

The interest component of the public debt servicing costs for the first quarter this year increased by €5.3 million and amounted to €64.8 million.

Government’s outlay on its Capital Programme for the first three months of this year amounts to €48.3 million, a decrease of €33.9 million when compared to the expenditure of €82.2 million for the first quarter last year. Main comparative decreases were recorded for WasteServ Malta (-€9.9 million), investment incentives (-€6.8 million) and roads construction and improvement (-€2.6 million). Another reason for this drop is expenditure on Mater Dei Hospital in 2008 that was not incurred this year (-€9.3 million).

The Central Government debt outstanding at the end of March amounted to €3,648.8 million, an increase of €350.6 million compared to March last year. Short-term and long-term borrowing increased by €202.0 million and €146.3 million respectively, while foreign borrowing declined by €6.9 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 €32.7 million, an increase of €9.4 million over the euro coins stock as at end March last year.

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