Deficit rises by €85 million

The deficit rose by €85.1 million to €368.6 million in the first seven months of this year, according to the National Statistics Office.

There was a drop of €16 million in recurrent revenue and an increase of €69.1 million in total expenditure.

Recurrent revenue amounted to €1,145.2 million, a decline of 1.4 per cent due to lower Customs and excise duties (-€40.3 million) and VAT (-€13.5 million), which outweighed the higher returns from income tax (+€21 million) and social security (+€10.9 million).

When compared to the same period last year, all the expenditure categories registered increases, resulting in higher total expenditure by €69.1 million.

Recurrent expenditure showed an increase of €54.3 million, totalling €1,258.5 million, as a result of higher spending in all its components, mainly programmes and initiatives. The increase in the latter constituted higher social security benefits (+€24.6 million), the shipyards' voluntary retirement schemes (+€19.4 million) and medicines and surgical materials (+€4.7 million), which were partly offset by a fall in energy support measures (-€20.8 million).

Moreover, the interest component of the public debt servicing costs for the period under review increased by €8.3 million and amounted to €116.3 million.

The government's capital expenditure for the first seven months amounted to €139 million from €132.4 million last year, an increase of €6.5 million, or 4.9 per cent.

The central government's debt outstanding at the end of July amounted to €3,876.6 million, an increase of €389.7 million compared to the same period last year.

Short- and long-term borrowing increased by €154.9 million and €240.8 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 central government, amounted to €35.7 million, an increase of €7.5 million over the euro coin stock as at end July last year.