Government shortfall rises to Lm70.5m

The shortfall between recurrent revenue and total expenditure in the first eight months of the year amounted to Lm70.5 million, an increase of Lm1.3 million compared to the same period last year, the National Statistics Office said yesterday.

The increase in total expenditure was Lm17.7 million while that in respect of recurrent revenue amounted to Lm16.4 million.

When compared to the same period in 2006, income tax revenue rose by Lm23.3 million to Lm156.6 million. Revenue from social security contributions and from value added tax increased by Lm4.9 million and Lm3.1 million respectively. Revenue from grants declined by Lm25.1 million for the period under review.

Recurrent expenditure amounted to Lm519.6 million, an increase of Lm21.8 million over the same period last year. This increase was underpinned by higher outlays of Lm8.9 million on social security benefits and by an increase of Lm7.1 million under the Ministry for the Family and Social Solidarity, this mainly on account of the government's energy support measures.

Lower interest payments on the government's long-term borrowing resulted in a decline of Lm800,000 in public debt servicing costs. Total interest payments in the period under review amounted to Lm52.3 million.

Capital expenditure from January to August amounted to Lm66.1 million, a drop of Lm3.3 million when compared to the same period in 2006. Lower capital outlays by the Ministry of Finance (-Lm6.2 million), were in part offset by higher expenditures under the Ministry for Rural Affairs and the Environment (+Lm1.7 million) and the Ministry for Urban Development and Roads (+Lm900,000).

When compared to August 2006, the central government's debt as at end August this year increased by Lm40.8 million, to stand at Lm1,401.5 million. When compared to the same period a year ago, foreign borrowing decreased by Lm10.1 million, while Treasury bills and government stock increased by Lm27.8 million and Lm23.6 million respectively.