Increase in government's revenue shortfall

The shortfall in government revenue for January and February amounted to €199.5 million, the National Statistics Office said.

It said that according to data obtained from the Consolidated Fund, the shortfall between recurrent revenue and total expenditure increased by €56.5 million when compared to February last year and amounted to €199.5 million.

Recurrent revenue decreased by €35.7 million, while total expenditure increased by €20.9 million. The Consolidated Fund recorded decreases in dividends on investment (-€9 million), customs and excise duties (-€7.1 million), fees of office (-€5.8 million), income tax (-€4.3 million), grants (-€3.2 million) and miscellaneous receipts (-€2.3 million).

At the same time, revenue from social security contributions increased by €1.3 million.

Recurrent expenditure amounted to €382.7 million, an increase of €30.7 million compared to the same period last year. The increase was mainly brought about by increases on social security benefits (+€12.9 million), the shipyard’s early retirement schemes (€17.9 million) and expenditure on medicines and surgical materials (+€11.3 million).

The interest component of the public debt servicing costs increased by €5.4 million and amounted to €37.2 million.

Government’s outlay on its Capital Programme for the first two months of this year amounted to €38.2 million, a decrease of €15.2 million when compared to the expenditure of €53.4 million for the same period last year. Capital expenditure of €9.3 million on the Mater Dei Hospital in 2008 was not repeated this year.

The government's debt outstanding at the end of February amounted to €3,635.4 million, an increase of €350 million compared to February last year.

Long-term and short-term borrowing increased by €201.1 million and €146.5 million respectively, while foreign borrowing declined by €7 million.

The euro coins issued in the name of the Maltese Treasury, considered as a currency liability pertaining to the government, amounted to €32.4 million, an increase of €10 million over the same period last year.