Structural deficit down by Lm26m

The structural deficit, the difference between recurrent revenue and total expenditure, in the first nine months of this year amounted to Lm109.9 million, down from Lm135.8 million in January-September 2003, according to figures released yesterday by the National Statistics Office.

Recurrent revenue amounted to Lm538.2 million and made up 63.8 per cent of this year's budget forecast. This represents an increase of Lm41.6 million or 8.4 per cent on the same period last year.

Total expenditure amounted to Lm648.1 million, an increase of Lm15.7 million over the Lm632.4 million expended last year and making up 69.1 per cent of this year's budgeted expenditure. The expenditure for the comparative period last year had made up 74.9 per cent of the actual total expenditure for 2003.

The increase in recurrent revenue was mainly due to higher revenues under income tax (+Lm8.9 million), VAT (+Lm11.5 million), reimbursements (+Lm2.3 million), dividends on investment (+Lm1), miscellaneous receipts (+Lm4.5 million) and EU grants (Lm13.8 million).

A net increase of Lm11.5 million was also registered under licences, taxes and fines, mostly by way of signing-on fees received upon privatising the operations of the lotteries earlier this year.

Meanwhile, revenue reductions were reported under social security (-Lm1.2 million), Central Bank of Malta (-Lm6.6 million), rents (-Lm1.7 million) and under customs and excise duties (-Lm2.5 million).

When compared to the same period in 2003, recurrent expenditure (excluding public debt servicing) increased by Lm18.8 million or 3.8 per cent, and amounted to Lm518.2 million. Recurrent expenditure for the period under review make up 70.1 per cent of this year's budgetary estimates and 73.7 per cent of the final outturn for 2003.