The shortfall between recurrent revenue and total expenditure of Central Government for the first four months this year amounted to €235.8 million.

According to data obtained from the Consolidated Fund of Government, the shortfall between recurrent revenue and total expenditure increased by €27.1 million over the comparative period in 2008 and amounted to €235.8 million. This was brought about by an increase in total expenditure of €37.6 million which outweighed the increase in recurrent revenue of €10.5 million.

During the period under review, recurrent revenue increased by €10.5 million. The main contributors to this increase were Social Security Contributions (+€20.3 million), Central Bank of Malta (+€12.9 million) and Income Tax (+€10.8 million). Conversely, falls were registered mainly in Customs and Excise Duties (-€16.5 million), Dividends on Investment (-€7.9 million), Value Added Tax (-€5.8 million), and Public Corporations (-€4.4 million).

Recurrent expenditure amounted to €747.6 million, an increase of €46.2 million over the comparative period last year. The increase was mainly brought about by increases in expenditure on social security benefits (+€18.4 million), the shipyards’ voluntary retirement schemes (+€18.6 million) and medicines and surgical materials (+€10.8 million).

As shown in Table 1, the interest component of the public debt servicing costs for the period under review increased by €4.1 million and amounted to €72.5 million.

Government’s outlay on its Capital Programme for the first four months of this year amounts to €80.6 million, down from €93.3 million last year. The main contributor to the fall in capital outlay during the period analysed is the 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 April amounted to €3,755.0 million, an increase of €445.5 million compared to April last year. Short-term and long-term borrowing increased by €234.2 million and €209.0 million respectively, while foreign borrowing declined by €6.3 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 €33.4 million, an increase of €8.9 million over the euro coin stock as at end April last year.

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