According to data obtained from the Consolidated Fund of Government, the shortfall between the recurrent revenue and total expenditure increased by €58.6 million over the comparative period in 2008 and amounted to €294.4 million. This was brought about by an increase in total expenditure of €54.3 million and a decrease in recurrent revenue of €4.3 million.
During January-May 2009, recurrent revenue amounted to €811.3 million, down from €815.6 million last year. The main contributors to this decline were Customs and Excise (-€26.6 million) and Value Added Tax (-€11.9 million). Conversely, improvements were observed in Social Security (+€21.5 million) and Income Tax (+€17.3 million).
The increase in total expenditure, from €1,051.4 million in January-May 2008 to €1,105.7 million in the comparable period of 2009, was mainly caused by increases in the components of recurrent expenditure. Recurrent expenditure increased by €58.5 million over the relative period last year due to higher expenditure on social security benefits (+€20.9 million), the shipyards’ voluntary retirement schemes (+€18.9 million) and medicines and surgical materials (+€11.9 million).
The interest component of the public debt servicing costs for the period under review increased by €4.3 million and amounted to €89.8 million.
Government’s outlay on its Capital Programme for the first five months this year amounted to €99.6 million, down from €108.1 million last year. The decline was mainly due to lower expenditure on Mater Dei Hospital (-€9.3 million).
The Central Government debt outstanding at the end of May amounted to €3,774.7 million, an increase of €457.1 million compared to May last year. Short-term and long-term borrowing went up by €253.3 million and €209.0 million respectively, while foreign borrowing declined by €14.0 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 €34.4 million, an increase of €9.1 million over the euro coin stock as at end May last year.