The government deficit widened in the first five months of this year as increased revenue failed to keep up with increased spending, official figures released today show.

The National Statistics Office said the shortfall between recurrent revenue and total expenditure increased by €80.7 million, and amounted to €235.8 million when compared to the same period in 2007.

An increase of €118.6 million in total expenditure was only partly offset by an increase of €37.9 million in recurrent revenue.

During the first five months this year, the Consolidated Fund recorded increases in revenue of €19.8 million and of €12.7 million from income tax and VAT respectively. Dividends on investment also added €7.9 million. At the same time, revenue from licences and fines declined by €7.7 million while revenue classified under Miscellaneous Receipts declined by €7.2 million.

Recurrent expenditure amounted to €857.8 million, an increase of €92.3 million compared to the first five months last year. Major increases in recurrent expenditure were recorded under Social Security Benefits. The Capital Programme for the first five months added €21.6 million and amounted to €108.1 million.

The interest component of the public debt servicing costs amounted to €85.5 million, an increase of €4.7 million over 2007.

The Central Government debt outstanding at the end of May amounted to €3,317.6 million, an increase of €67.4 million compared to May last year.

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