Government debt up €78 million

The shortfall between recurrent revenue and total expenditure in the first four months of this year amounted to €208.7 million, an increase of €76.6 million when compared to the same period of 2007, the National Statistics Office said, referring to data from the Consolidated Fund.

A rise of €130.6 million in total expenditure was only partly offset by an increase of €54.1 million in recurrent revenue. In the first four months this year, the Consolidated Fund recorded increases in revenue of €26.0 million, €13.9 million and €9.4 million respectively from income tax, VAT and social security contributions. Dividends on investment also added €7.8 million in the period under review.

Recurrent expenditure amounted to €701.4 million, an increase of €96.5 million compared to the first four months last year. Major increases in recurrent expenditure were recorded under social security benefits, which added €26.3 million, and under the Ministry for Investment, Industry and Information Technology (+€12.5 million). Likewise, the Ministry of Health, the Elderly and Community Care and the Ministry for Rural Affairs and the Environment added €10.7 million and €10.1 million respectively.

In the period under review the interest component of the public debt servicing costs amounted to €68.3 million, a comparative increase of €5 million over 2007.

The capital programme for the first four months this year added €29.1 million and amounted to €93.3 million.

During this period, 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 €10.4 million respectively.

On the other hand, capital expenditure under the Ministry of Finance declined by €12.8 million due to a substantially lower expenditure on the Mater Dei Hospital project.

No new loans were taken up during the period under review. The central government's debt outstanding at the end of April amounted to €3,309.5 million, an increase of €78 million compared to the gross central government debt outstanding at the end of April last year.

While long-term borrowing increased by €160 million, short-term borrowing and foreign borrowing declined by €100.1 million and €6.4 million respectively.

At the end of April, the stock of euro coins added to the gross government debt position amounted to €24.5 million.