Deficit widens by €80m in first quarter

The shortfall between recurrent revenue and total expenditure in the first three months of the year increased by €80.4 million, and amounted to €210.1 million when compared to the same period of 2007, the NSO said today.

It said an increase of €110.2 million in total expenditure was partly offset by an increase of €29.8 million in recurrent revenue.

During the first three months this year, the Consolidated Fund recorded an increase of €14.9 million in revenues from income taxes, while revenues from fees of office and from Value Added Tax increased by €5.5 million and by €5.4 million respectively. Dividends on investment also added €7.8million during the period under review.

Recurrent expenditure amounted to €520.5 million, an increase of €70.7 million compared to the first quarter of 2007. Major increases in recurrent expenditure were recorded under the Social Security Benefits (+€28.0 million), and under the Ministry for Rural Affairs and the Environment (+€9.4 million).

The interest component of the public debt servicing costs for the first quarter this year increased by €6.3 million, and amounted to €59.5 million.

Government’s outlay on its capital programme for the first quarter this year amounted to €82.2 million, an increase of €33.3 million when compared to expenditure of €48.9 million for the same period last year. During the period under review capital expenditure under the Ministry for Investment, Industry and Information Technology, and under the Ministry for Rural Affairs and the Environment increased by €13.6 million and €10.3 million respectively.

No new loans were taken up during the first quarter.

The Central Government debt outstanding at the end of March amounted to €3,298.2 million, an increase of €93.7 million compared to the gross Central Government debt outstanding at the end of March 2007.

While long-term borrowing increased by €136.4 million, short-term borrowing and foreign borrowing declined by €59.3 million and €6.6 million respectively. At the end of March, the stock of euro coins added to the gross government debt position amounted to €23.3 million.