Shortfall in government revenue reaches €337.5 million

Shortfall in government revenue increased by €81.1 million in the first half of the year, reaching €337.5 million, the National Statistics Office said.

It said that according to data obtained from the Consolidated Fund, recurrent revenue declined by €21.2 million whereas total expenditure increased by €60 million.

Recurrent revenue amounted to €969.2 million. This decline was brought about by lower customs and excise duties (-€34.2 million) and value added tax (-€15.6 million) which outweighed the higher returns from income tax (+€20.9 million) and social security (+€11.3 million).

The increase in total expenditure, from €1,246.7 million in the first half of 2008 to €1,306.7 million in the comparable period this year, was mainly caused by increases in the components of recurrent expenditure.

Recurrent expenditure amounted to €1,089.9 million, an increase of €56.4 million or 5.5 percent over the relative period last year, mainly due to higher expenditure on social security benefits (+€22.2 million), the shipyards’ voluntary retirement schemes (+€19.1 million) and medicines and surgical materials (+€9.3 million).

Other increases were recorded under the personal emoluments and operational and maintenance expenditure categories, which increased by €8.9 million and €7.1 million, respectively.

The interest component of the public debt servicing costs increased by €3 million and amounted to €96.7 million.

Government’s capital expenditure amounted to €120.1 million, a marginal increase from the €119.5 million recorded last year.

The government's outstanding debt at the end of June amounted to €3,820.4 million, an increase of €351.6 million compared to June last year.

Short-term and long-term borrowing advanced by €224.5 million and €132.3 million respectively, while foreign borrowing declined by €13.8 million.

The euro coins issued in the name of the Maltese Treasury, which are considered as a currency liability pertaining to the government, amounted to €34.9 million, an increase of €8.2 million over the euro coin stock as at end June last year.