Deficit rises to €328 million

The deficit rose to €328 million between January and October, the National Statistics Office said.

According to data from the government’s consolidated fund, recurrent revenue for the first 10 months of the year exhibited a decline of €24.5 million, while total expenditure rose by €60.4 million, increasing the shortfall by€84.9 million.

Recurrent revenue was recorded at €1,763.4 million, a decline of 1.4 per cent, compared to the corresponding period in 2008. This was attributed to lower customs and excise duties (-€62.2 million) and value added tax (-€20.9 million).

Increases in revenue were recorded from grants (+€24.6 million), social security (+€20.1 million), licenses, taxes and fines (+€17.7 million) and income tax (+€4 million).

Compared to the same period last year, total expenditure registered an increase of €60.4 million as a result of higher spending on recurrent expenditure, interest payments, and capital.

Recurrent expenditure went up by €46.6 million, totalling €1,729.3 million. The largest increase was recorded in programmes and initiatives (€22.3 million) as a result of higher expenditure on social security benefits (+€32 million), the shipyards’ voluntary retirement scheme (+€20 million), medicines and surgical materials (+€6.2 million), third country nationals (+€5.9 million), EU own resources (+€4.3 million) and solid waste strategy (+€3.8 million).

These were partly offset by a fall of €52 million in energy support measures. Personal emoluments added €16.9 million.

The interest component of the public debt servicing costs for the period

rose by €3.1 million and amounted to €170.2 million.

Government’s capital expenditure for the first 10 months this year was recorded at €192 million from €181.3 million last year, up by 5.9 per cent.

The Central Government debt outstanding at the end of October totalled €3,899.1 million, an increase of €355.7 million compared to October last year.

Short-term and long-term borrowing rose by €201.2 million and €161.7 million respectively, while foreign borrowing declined by €14 million. The euro coins issued in the name of the Maltese Treasury, considered a currency liability pertaining to the government, amounted to €36.8 million, €6.8 million more than the euro coin stock as at end October last year.