Government deficit up €80 million

Consolidated Fund data indicate that in the first half of the year the shortfall between recurrent revenue and total expenditure rose by €80.1 million when compared to the same period last year, amounting to €256.3 million, the National Statistics Office said yesterday.

Furthermore, in the period under review, the Consolidated Fund recorded increases in revenue of €26.2 million and €16.1 million from taxes and income and VAT, respectively.

Social security contributions went by €12.1 million.

On the other hand, revenue from licences, taxes and fines dropped by €6.5 million. Similarly, revenue categorised under miscellaneous receipts slipped by €9.9 million.

Recurrent expenditure amounted to €1,033.6 million, an increase of €123.2 million compared to the first six months of last year. Major increases were recorded under social security benefits, adding €38.5 million.

Expenditure under the Ministry of Health, the Elderly and Community Care and the Ministry for Investment, Industry and Information Technology added €19.7 million and €10.2 million respectively.

The interest component of the public debt servicing costs amounted to €93.6 million, a comparative rise of €4.1 million over the first half of last year.

The capital programme added €10.5 million, amounting to €119.5 million.

Capital expenditure under the Ministry for Investment, Industry and Information Technology and under the Ministry for Rural Affairs and the Environment rose by €13.9 million and €10.2 million respectively. On the other hand, capital expenditure under the Ministry of Finance decreased by €28.7 million.

New loans were taken up by the government in the first six months this year, amounting to €106 million. All loans were taken up last month.

The central government debt outstanding at the end of last month amounted to €3,468.8 million, an increase of €131.2 million compared to the gross central government debt outstanding at the end of June last year.

And while long-term borrowing rose by €149.4 million, short-term borrowing and foreign borrowing dropped by €38 million and €6.4 million respectively.

At the end of last month, the euro coins issued in the name of the Maltese Treasury, which are considered as a currency liability pertaining to the central government, amounted to €26.7 million.