The shortfall between recurrent revenue and total expenditure amounted to €279.2 million last year, down by €17.8 million from 2009, figures for government finance data released by the National Statistics Office last week show.
Recurrent revenue advanced by €154.6 million, offsetting the rise of €136.8 million in total ex-penditure; recurrent revenue stood at €2,525.4 million.
The 6.5 per cent increase over 2009 was mainly triggered by higher returns from income tax (up by €61.8 million), VAT (up by €28.5 million) and social security (+€26 million). Improvements in other revenue also materialised.
Last year, total expenditure reached €2,804.6 million, up by 5.1 per cent thanks to greater outlay on recurrent and capital expenditures. The main contributor to the increase in recurrent expenditure was social security benefits which rose by €69.5 million.
Recurrent expenditure in- creased partly because of the reclassification of the Malta Tourism Authority from capital to recurrent expenditure (€27.8 million) and the budgetary energy support compensation of €12.3 million.
Declines were recorded in expenditure on the shipyards’ voluntary retirement schemes (€17.8 million) and on medicines and surgical materials (€12.4 million).
Personal emoluments added €28 million compared to 2009.
Capital expenditure rose by €40.1 million, mainly because of increases related to the €30.2 million south sewage treatment infrastructure and €22.3 million in education structural funds.
The introduction of the Jeremie Financial Engineering Fund cost €10 million, while €10.8 million was transferred to the Trea-sury Clearance Fund. The re-classification of the MTA partly compensated for the increases.
Interest on public debt rose to €196.8 million.
As at last December, government debt stood at €4,169.9 million, up by €283 million (7.3 per cent) compared to 2009. The increase in government debt was the result of higher long-term borrowing, which added €387.3 million.
Short-term securities fell by €96.4 million and foreign borrowing by €12.9 million.
Euro coins issued for the Treasury rose by €3.8 million over the coin stock at the end of 2009, and totalled €41 million.