Government finances improve
The shortfall between the government’s recurrent revenue and total expenditure improved by €42.4 million to €222.6 million in the first quarter this year when compared to the same period last year.
The National Statistics Office said that data obtained from the Consolidated Fund showed a rise in recurrent revenue of €23.5 million and a drop in total expenditure of €18.8 million, lowering the government’s deficit to €222.6 million.
During the period under review, recurrent revenue was recorded at €451.5 million. The comparative increase of 5.5 per cent was triggered by higher returns from income tax (+€22.7 million) and value added tax (+€14.6 million).
On the other hand, declines in recurrent revenue were registered in licenses, taxes and fines (-€5.5 million), social security (-€3.9 million) and customs and excise duties (-€3.2 million).
Compared to January-March 2009, total expenditure stood at €674.1 million, down by 2.7 per cent as a result of lower interest payments and recurrent expenditure.
Notwithstanding a higher expenditure on social security benefits of €15.2 million, and the reclassification of the Malta Tourism Authority (which shifted €13 million from capital to recurrent expenditure), recurrent expenditure went down by €2.1 million, totalling €577.8 million.
These expenditures were outweighed by lower outlays on the shipyards' voluntary retirement schemes (-€16.9 million), medicines and surgical materials (-€13.3 million) and streets and roads lighting (-€5.9 million).
Capital expenditure edged up by €0.9 million. The reclassification of the Malta Tourism Authority was offset by higher expenditure on the Malta South Sewage Treatment Infrastructure (+€9.1 million), the EU Agricultural Guarantee Fund (+€3.4 million) and the EU Agricultural Fund for Rural Development (€2.0 million).
The interest component of the public debt servicing costs was €17.6 million lower than that for the comparable period in 2009 and stood at €47.2 million.
At the end of March 2010, the central government debt outstanding increased by €336.4 million to €3,985.2 million, compared to the corresponding month last year.
Long-term borrowing edged up by €354.5 million whereas short-term securities fell by €7.8 million. Concurrently, foreign borrowing declined by €13.2 million.
The euro coins issued in the name of the Maltese Treasury totalled €36.9 million, up by €4.2 million when compared to the euro coin stock as at the end of March last year.
Popular Stories
Old buses, drivers to return
Former Judge Ray Pace found dead
Updated: Minister apologises for...
Three new Nationalist MPs elected –...
Where’s Everybody staff is given notice
Updated - Director of Prisons submits...
Update 3 - Woman trapped as car crashes...
Revealed...the face of a Maltese woman...
PL reacts as PN labels Franco Debono's...
In Discussion
Old buses, drivers to return
Updated: Minister apologises for...
PL reacts as PN labels Franco Debono's...
Updated - Director of Prisons submits...
Enemalta seeking minimum five year gas...
Protected birds shot and trapped as...
Mario de Marco, Zammit Dimech concede,...
PN postpones salaries as financial...
Updated - PM's offer to Opposition MPs...
13 Comments
Post comment
Please sign in or create your Account to post comments.
P. Schembri
Apr 30th 2010, 21:33
The PN Government just had a crash course in cooking. Cooking of accounts books, that is. Why the debt incurred by Enemalta isn't mentioned anywhere? Euro 450 million is no joke. Does this figure go with the National Debt or with the deficit? Answers please.
P.Cassar
Apr 30th 2010, 18:34
@ Gianninu "debt increased by 336.4 million to 3,985 MILLION" GREECE IS NOT FAR AWAY AFTER ALL AND SOME FOOLS ARE STILL HAPPY AND CELEBRATING!!!! POOR MALTA
Bertrand Farrugia
Apr 30th 2010, 15:24
@.N. Calleja and Gianninu Saliba
You're two of a breed that is fast becoming extinct on these islands. We (including some financial wizards and economic experts) all know that with creative accounting you can be a Picasso and show sunny skies when it's cloudy and stormy. Let's hope you'll catch the drift one day soon.
G Brincat
Apr 30th 2010, 19:08
Being a member of the EU and the Eurozone means we are under the scrutiny of the European Central Bank and the EU Commission - which institutions are there to protect all EU citizens including you and me. Suggesting that creative accounting will help to paint a pretty picture shows just how little you know about the EU, accounting standards and the checks and balances to ensure no country can be as creative as you suggest. Why is it that you cannot fathom the possibility that the Government is actually doing a fine job in controlling the nation's finances? Unfortunately there are so many that simply believe the nauseating spin from one side of the political media and simply refuse to believe what is staring them in the face. Our quality of life is proof positive of what the real situation is - just look at Greece and thank your lucky stars that the country is well managed!
Peter Murray
Apr 30th 2010, 15:18
@E.Muscat,
If memory serves me well the UK hasn't loaned a massive amount of money(or any amount for that matter) to other EU member states and whilst it too, along with most other countries, is in the financial ICU it possess the wherewithal to control it's own interest rates and ability to devalue it's currency if needed-unllke eurozone countries.Also heaven forfend and help if any country should need the intervention of the IMF as where they go and intervene no grass grows thereafter and the country goes further backwards.
E.Muscat
Apr 30th 2010, 14:10
@Peter Murray:do inlude the UK in that category,as well.All 27 EU members have recorded deficits this year:not that the previous years were any better!The EU should make sure that all EU govts have surpluses from now on, to pay for the massive debts that are being incurred.
All western nations are living beyond their means and they have the gall to expect that other people will continue to lend them money till they declare bankruptcy .That is what secular democracy is all about :rob peter and don't necessarily give it to paul or peter either !
Gianninu Saliba
Apr 30th 2010, 13:58
Oh Joseph, dear Joseph! One good news follows another and your doom and gloom expectations are fast evaporating. Sorry, Joseph, but you remind me of Gordon Brown. He was so keen to take over from Tony Blaire and guess what? He has become the least popular of the UK's current politicians. Well, you also were keen in taking over from Alfred Sant and it appears that you are a bigger flop than the Labour leader before you. Actually, I think that you are heading to be worse than the one before him. How low can your ratings go? Nobody has ever had worse ratings than iz-zero. Start being honest and admit that Dr. Gonzi is doing a great job and then your ratings should improve.
robert micallef
Apr 30th 2010, 15:43
tantx tifrah wisq gann, ghax ma iddumx ma tiehu tisbita tajba!! taf li id dejn li ghandhom l-enemalta, l-airmalta, il-freeport, id-dejn li ghandu il gvern ma l-importaturi tal medicini etc etc ma hux meqjus bhala dejn tal gvern?? kieku tghodd il-miljuni ta dejn li ghandhom dawn il-korporazzjonijiet u izzidu mad dejn tal gvern int u il-mexxejja ta l-EU, bhall Angela Merkel ihosskhom hazin!! Dawn id djun kollha responsabbli taghhom il- gvern tieghek u hadd izjed, allura issa nistennew lil istess gvern isewwi is sitwazzjoni prekarja ghax meta jindunaw ta brussel ikun tard wisq.
Jeffrey Galea
Apr 30th 2010, 13:07
Dr Gonzi and his i-know-everything-and-you-don't Minister of Finance are steering Malta into a financial brick wall. i hope the EU will look into the country's dire finances and impose drastic actions to avoid another Greece recurrence.
N.Calleja
Apr 30th 2010, 12:52
The Super One syndrome seems to be effecting all you gloomers and moaners. When statistics are negative. you blow your trumpets. Now that they are good, you can't stop moaning. Give us a break!! Very soon we'll be reading a typical gloomers' statement by Charles Mangion....the gloomer of the year!!
lgalea
Apr 30th 2010, 12:30
more unemployed, lower wages = social security (-€3.9 million)
Less purchasing power less buying = customs and excise duties (-€3.2 million)
Amnesty = income tax (+€22.7 million)
Less money in peoples pockets = value added tax (+€14.6 million)
social security benefits of €15.2 million = how much for illegal immigrants?
medicines and surgical materials (-€13.3 million) = medicines out of stock
streets and roads lighting (-€5.9 million) = due to power failures savings?
At the end of March 2010, the central government debt outstanding increased by €336.4 million to €3,985.2 million+ €182 MILLION Government guaranteed debt which is not shown here - €4167.2
Peter Murray
Apr 30th 2010, 11:47
They obviously improved to enable us to lend it all away to Greece and we may never get it back.Stand by for Portugal,Spain and possibly Italy and Ireland as well to get their begging bowls out.How much will we "lend" these countries?
Gordon Farrugia
Apr 30th 2010, 11:24
is this the administration's way of reducing debt?
"At the end of March 2010, the central government debt outstanding increased by €336.4 million to €3,985.2 million, compared to the corresponding month last year."
If we continue at this pace we will soon be another Greece and the present administration will have to be accountable for that as it has been in power for some 25 years.
Please choose the reason of your report below: