Deficit grows by €96.2m

The shortfall between government recurrent revenue and total expenditure in the first eight months of the year amounted to €260.4 million an increase of €96.2 million when compared to the same period last year, the NSO said today.

It said an increase of €144.1 million in total expenditure was partly offset by an increase of €47.9 million in recurrent revenue.

During the first eight months this year, the Consolidated Fund recorded increases in revenue of €30.7 million and €24.6 million from income tax and from VAT respectively.

Social Security Contributions also added €20.0 million but revenue from licences and fines declined by €9.1 million while revenue classified under Miscellaneous Receipts declined by €8.9 million, essentially because of lower proceeds from sale of Malta Government Stocks by auction.

Recurrent expenditure amounted to €1,356.3 million, an increase of €146.1 million compared to the first eight months last year. Significant increases in recurrent expenditure were recorded under Social Security Benefits (+€37.8 million), the Ministry of Health, the Elderly and Community Care (+€35.8 million), and under the Ministry for Investment, Industry and Information Technology (+€20.7 million).

During the period under review the interest component of the public debt servicing costs amounted to €128.9 million, an increase of €7.2 million over 2007.

The Capital programme for the first eight months this year declined by €9.1 million and amounted to €144.9 million.

Loans taken up by the government and transferred to the Consolidated Fund during the first eight months of the year amounted to €232.7 million, of which €93.2 million were on account of matured stock.

The Central Government debt outstanding at the end of August amounted to €3,521.4 million, an increase of €256.8 million compared to the gross Central Government debt outstanding at the end of August last year. Long-term and short-term borrowing increased by €206.7 million and by €27.3 million respectively, while foreign borrowing declined by €6.2 million. At the end of August, the euro coins issued in the name of the Maltese Treasury which are considered as a currency liability pertaining to the Central Government,