The central Government has recorded a deficit of €322.5 million in the first 10 months, up from €289.6 million registered in the same period last year.

The National Statistics Office said that an increase in recurrent revenue of €162.9 million was offset by a rise in total expenditure of €195.8 million, widening the government deficit by €32.9 million.

During January-October, recurrent revenue stood at €2,138.7 million, a rise of 8.2 per cent over last year. This increase was mainly triggered by higher proceeds from Income Tax by €108.1 million.

Recurrent expenditure rose by €125 million. The major increase was recorded in Programmes and Initiatives by €88.3 million, mainly as a result of higher social security benefits (+€40.2 million), medicines and surgical materials (+€7.8 million), EU own resources (+€6.6 million), contribution to church schools (+€3.9 million) and assistance to help the elderly live independently (+€3.6 million).

Expenditure on capital projects was registered at €270.3 million.

The increase of €61.3 million over the corresponding period in 2011 included an equity injection of €20 million to the national air carrier.

During the period under review, the interest component of the public debt servicing costs totalled €185.6 million, an increase of €9.6 million over the comparable period last year.

At the end of October, central Government debt stood at €4,619.9 million, up by €235.2 million, or 5.4 per cent, over the corresponding period last year.

This increase was the result of higher long-term borrowing, which added €328.7 million.

On the other hand, short-term securities declined by €64.7 million and foreign borrowing went down by €12.7 million.