Public debt up 10 %

Public debt shot up by over €400 million in the space of a year to stand at €4.1 billion at the end of last month, a 10.6 per cent increase on the figure recorded at the end of May last year.

The deficit in the same period declined by 2.1 per cent.

The National Statistics Office said public debt stood at €4,176 million at the end of May, up €401.6 million because of a €441.6 million increase in long-term borrowing.

Short-term securities and foreign borrowing dropped by €29.1 million and €13 million respectively, slightly mitigating the effect of long-term borrowing.

The NSO said the shortfall between the government's recurrent revenue and total expenditure in the first five months improved by €6.2 million to €288.2 million.

The decline in the deficit was the result of a rise in recurrent revenue of €37.9 million, which was partly offset by additional expenditure of €31.7 million.

Recurrent revenue went up by 4.7 per cent to stand at €849.2 million, due to €23.5 million more brought in from income tax, €23.5 million more from Value Added Tax and €10.4 million more in customs and excise returns.

Expenditure during that period amounted to €1,137 million, up by 2.9 per cent due to a rise in recurrent expenditure and higher outlays on capital.

The major contributors to the increase in recurrent expenditure were €26.3 million more spent on social security benefits, the reclassification of the Malta Tourism Authority, which shifted €13 million from capital to recurrent expenditure, and a higher contribution to the University of €4.5 million.

Declines were recorded in the shipyards' voluntary retirement schemes and medicines and surgical materials, by €17.4 million and €15 million respectively.

Capital expenditure went up by €9.3 million.

This was mainly brought about by increases in the EU Cohesion Fund 2007-2013 by €9.2 million, the External Borders Fund by €6 million, road construction improvements of €3.5 million and the EU Agriculture Guarantee Fund of €3.4 million.

A €14.8 million loan facility to Greece as part of the Eurozone's rescue package was also issued last month.