Deficit down in first seven months

The shortfall between the government’s recurrent revenue and total expenditure amounted to €238.2 million in the first seven months of this year, down by €83.9 million over the corresponding period in 2010, according to statistics released by the National Statistics Office.

In January-July 2011, recurrent revenue increased by €73.9 million while total expenditure registered a decline of €9.9 million.

Recurrent revenue stood at €1,325.0 million, up by 5.9 per cent over last year. The major increases were registered in customs and excise duties (+€29.6 million), grants (+€19.1 million), social security (+€17.4 million) and Value Added Tax (+€16.0 million). Conversely, a reduction in proceeds was recorded from income tax (-€8.2 million).

The increase of €6.5 million in recurrent expenditure was driven by higher spending on state contribution (+€7.2 million), personal emoluments (+€6.5 million), public service obligations (+€4.3 million) and medicines and surgical materials (+€3.8 million). These were partly eclipsed by lower outlays on social security benefits (-€10.0 million) and contributions to government entities (-€6.1 million).

Capital expenditure was recorded at €139.6 million, down from €163.2 million last year. The lower capital expenditure occurred as a result of the completion of the Malta South Sewage Infrastructure.

The interest component of the public debt servicing costs increased by €7.2 million to €124 million.

At the end of July, government debt stood at €4,425.1 million, up by €296.2 million, or 7.2 per cent, over the corresponding period last year. This was the result of higher long-term borrowing, which added €554.8 million.

On the other hand, short-term securities and foreign borrowing decreased by €250.3 million and €13.2 million respectively. The euro coins issued in the name of the Maltese Treasury went up by €4.1 million when compared to the euro coin stock as at the end of July 2010, and totalled €43.8 million.