The shortfall between the government's recurrent revenue and total expenditure amounted to €172.2 million in the first eight months this year, down by €103.1 million when compared to the same period last year.
Between January and August, recurrent revenue increased by €93.8 million, while total expenditure registered a decline of €9.3 million, resulting in an improvement in the government deficit when compared to the corresponding period last year.
During the period under review, recurrent revenue stood at €1,603.7 million, up by 6.2 per cent over last year.
The major increases were registered in value added tax (+€44.9 million), customs and excise duties (+€30.1 million), grants (+€18.8 million), and social security (+€16.6 million).
Conversely, a reduction in proceeds was recorded from income tax (-€19.8 million).
Total expenditure stood at €1,776 million, down by €9.3 million when compared to the first eight months last year, as a result of lower outlays on capital expenditure.
On the other hand, recurrent expenditure and interest payments recorded increases.
The increase of €12.8 million in recurrent expenditure was driven by higher spending on personal emoluments (+€6.7 million), social security state contribution (+€4.8 million), medicines and surgical materials (+€6.6 million) and public service obligations (+€3.7 million).
These were partly offset by lower outlays on social security benefits (-€9.1 million).
Capital expenditure was recorded at €163.1 million, down from €189.7 million last year. The lower expenditure on capital projects, by €26.6 million, was due to the completion of the Malta South Sewage Infrastructure.
The interest component of the public debt servicing costs for the period under review increased by €4.5 million and reached €137.9 million.
At the end of August, the central government's debt stood at €4,415.9 million, up by €169.3 million, or four per cent, over the corresponding period last year.
This was the result of higher long-term borrowing, which added €375.6 million.
On the other hand, short-term securities and foreign borrowing decreased by €197.6 million and €13.3 million respectively.