Government deficit rises to €66.8m in second quarter

The government had a deficit of €66.8 million in the second quarter of this year, compared to a deficit of €38.7 million for the second quarter of 2007, the NSO said today.

It said that in the June quarter this year total revenue amounted to €542.7 million, an increase of €24.1 million compared to the second quarter of 2007. The main increase was recorded under ‘social contributions receivable’ which added €10.6 million.

Underpinned by higher VAT revenues, ‘taxes on production and imports’ added €9.6 million, while ‘current taxes on income, wealth’ increased by €9.9 million.

Total expenditure during the second quarter amounted to €609.5 million, an increase of €52.3 million compared to the same quarter last year. This increase was brought about by increases in intermediate consumption (+€17.6 million), in compensation of employees (essentially wages and salaries which added €14.1 million), and Social Benefits (+€16.6 million).

Higher interest payments pushed up the property income payable during the second quarter to €47.1 million, an increase of €14.1 million over the same quarter in 2007.

Meanwhile, reflecting a lower capital outlay by government, capital formation declined by €13.2 million to €31.9 million.

When compared to June 2007, total general government debt outstanding at the end of June this year increased by €116.6 million, and amounted to €3,528.0 million. This increase was underpinned by higher long-term securities (Malta Government Stocks) which added €148.5 million, while short-term securities (Treasury Bills) declined by €37.3 million. Moreover, as from January 2008, the euro coins issued in the name of the Treasury are being considered as a currency liability pertaining to the Central Government. At the end of June, this liability amounted to €26.7 million.