Revenue from income tax rises by Lm15 million

The shortfall between recurrent revenue and total expenditure in the first half of the year stood at Lm75.7 million, Lm1.6 million higher than the shortfall reported for the first six months of last year, the National Statistics Office said yesterday.

An increase of Lm12.2 million in total expenditure was in part offset by an increase of Lm10.6 million in recurrent revenue.

Revenue from income tax rose by Lm15.1 million in the first half of the year.

Concurrently, revenue from social security contributions and VAT increased by Lm5.9 million and by Lm3.3 million respectively.

On the other hand, revenue from grants dropped from Lm24.1 million last year to Lm2.9 million.

Recurrent expenditure amounted to Lm390.8 million, an increase of Lm18.2 million compared to the same period last year. This increase was essentially brought about by a rise of Lm6.8 million in social security benefits, higher outlays (+Lm2.8 million) on medicines and surgical materials by the Ministry of Health and increases (+Lm2.2 million) due to the government's energy support measures, under the Ministry for the Family and Social Solidarity.

Lower interest payments on the government's long-term borrowing resulted in a decline in the interest component of the public debt servicing costs for the January-June period.

Total interest payments for the six months under review amounted to Lm38.4 million.

Capital expenditure in the first six months of the year amounted to Lm46.8 million, registering a drop of Lm5.2 million when compared to the capital expenditure for the same period last year.

Lower capital outlays by the Ministry of Finance (-Lm6.6 million) and by the Ministry for Tourism and Culture (-Lm1 million) were in part offset by higher expenditures under the Ministry for Rural Affairs and the Environment (+Lm2.1 million).

New loans taken up by the government in the first half of the year amounted to Lm28.9 million.

The central government debt outstanding at the end of last month amounted to Lm1,380.5 million, an increase of Lm22.2 million over June 2006.

When compared to 12 months ago, government stocks and foreign borrowing declined by Lm42.4 million and Lm10.1 million respectively, while outstanding Treasury bills increased by Lm75.2 million.