The deficit was down by €10.8 million in the first nine months on the back of higher receipts from taxes, figures out yesterday show.
The National Statistics Office said the deficit stood at €271.4 million in September, down from €282.2 million the year before.
The improvement came as a result of an increase in recurrent revenue by €134.8 million, which outweighed the increase in total expenditure of €124.0 million.
Between January and September recurrent revenue surpassed the €2 billion mark, up by seven per cent.
Increases were registered in income tax receipts (an increase of €88.1 million), grants (€30.2 million), social security (€29.2 million) and Customs and excise duties (€23.8 million).
The Government also raked in €15.7 million more from VAT receipts.
On the flipside, expenditure surpassed the €2.3 billion mark, a 5.6 per cent increase when compared with 2012.
The NSO said this was primarily due to added outlays on recurrent and capital expenditures.
Recurrent expenditure increased by €113.3 million, as a result of higher spen-ding on programmes and initiatives (an increase of €74.5 million) and wages (€29.6 million).
The NSO noted that the increase in programmes and initiatives was driven by a higher outlay on social security benefits that went up by €62.5 million.
Increases were also registered in the expenditure to finance the feed-in tariff, which the Government pays to households to install photovoltaic panels, and the Electoral Commission as a result of the general election.
However, money transfers to local councils decreased by €8 million.
Expenditure on capital projects amounted to €256.7 million, an increase of €13.3 million over last year. But this amount includes a higher equity injection of €40 million to Air Malta, which stood at €20 million in 2012.
Interest on public debt servicing costs was recorded at €165.5 million, a decline of €2.6 million.
At the end of September, central Government debt stood at €5.1 billion.