2008 deficit rises to €233m
Revenue up by €77m, offset by €201m rise in expenditure
The deficit as at the end of last year stood at €233.1 million, €124 million more than in the previous year.
Earlier figures released by the National Statistics Office showed that the shortfall after the first two months of this year amounted to €199.5 million.
In the 2009 Budget Speech Finance Minister Tonio Fenech had said the government aimed to close off this year with a deficit of €98.8 million.
Since then he has admitted that, although this still remained the target, it would be difficult to reach it in the global financial scenario.
While the government will maintain control of the deficit, he had told The Times, it would give priority to employment even if this meant a few sacrifices in terms of the shortfall.
Financial figures for 2008 issued by the NSO, based on the Government's Consolidated Fund, show that last year revenue rose by €77.7 million but was offset by a €201.7 rise in expenditure.
Income tax rose by €72.5 million and VAT by €33.6 million, while social security contributions also went up by €29.9 million. However, grants fell by €26.1 million and licences, taxes and fines by €12.4 million.
On the other hand, social security benefits handed out rose by €52.5 million and the shipyard's voluntary retirement scheme cost €40.9 million. Energy measures also increased by €35.7 million.
Interest paid on debt rose by €10 million and interest on loans by €10.4 million.
Expenses incurred by the Ministry of Health, the Elderly and Community Care rose by €14.2 million and those by the Ministry for Rural Affairs and the Environment by €11.4 million.
However, expenditure under the capital programme fell by €35.8 million and the cost of construction works and equipment at Mater Dei Hospital by €53.7 million.
Loans taken by the government last year totalled €285.7 million, of which €93.2 million were on account of matured stock.
Long- and short-term borrowing rose by €201.1 million and €10.9 million respectively, while foreign borrowing fell by €7.2 million.
Government debt at the end of the year stood at €3,525.20, a €227 rise over the previous year.