The shortfall between the government’s recurrent revenue and total expenditure amounted to €284.3 million in the first half of this year, an increase of €94.1 million compared to the corresponding period last year, the National Statistics Office said.
The NSO said the increase in recurrent revenue of €62.9 million was outweighed by a rise in total expenditure of €157 million, widening the government deficit.
During January-June, recurrent revenue stood at €1,203.5 million, a rise of 5.5 per cent over last year. The main contributors were income tax (+€56.3 million), social security (+€16.2 million), miscellaneous receipts (+€13.1 million) and value added tax (+€10.6 million).
These were partly offset by a decline in proceeds from grants (-€26.3 million), customs and excise duties (-€7.4 million) and the Central Bank of Malta (-€6 million).
Compared to 2011, total expenditure was recorded at €1,487.8 million, up by 11.8 per cent, as a result of higher outlays on all expenditure components.
Recurrent expenditure increased by €117.9 million. Government’s capital expenditure for the period under review amounted to €156.4 million.
When compared to the corresponding period last year, the increase of €34.4 million was mainly the result of an equity injection of €20 million to the national air carrier, an increase in EU funds related to the ministry for Infrastructure, Transport and Communication (+€11.1 million) and higher investment incentives (+€3.7 million).
These were partly outweighed by a drop of €5 million in the contribution towards the treasury clearance fund.
Moreover, during January-June, the interest component of the public debt servicing costs recorded an increase of €4.7 million.
Central Government debt stood at €4,794.9 million, up by €361.4 million, or 8.2 per cent, over the corresponding period last year.
This increase was the result of higher long-term borrowing, which added €505 million. On the other hand, short-term securities and foreign borrowing declined by €81.1 million and €12.8 million, respectively.
Moreover, as a result of consolidation, higher holdings by government funds in MGSs resulted in a reduction of €54.2 million. The euro coins issued in the name of the Maltese Treasury went up by €4.5 million when compared to the coin stock as at the end of June 2011, and totalled €47 million.