The government’s deficit between January and August amounted to €209.9 million, €13 million more than in the same period last year.

Recurrent revenue registered an increase of €149 million, offset by higher expenditure of €162 million when compared to the corresponding period last year, thereby widening the shortfall between recurrent revenue and total expenditure.

During the first eight months, recurrent revenue was recorded at €1,986.8 million, up by 8.1 per cent over last year.

The main contributors to this increase were value added tax, grants, income tax and social security contributions. Conversely, customs and excise duties registered a decline.

Recurrent expenditure increased by €123.2 million, mainly as a result of higher spending on programmes and initiatives.

The interest component of the public debt servicing costs for the period under review amounted to €151.8 million, an increase of €3.2 million from last year.

Expenditure on government’s capital projects amounted to €254.1 million. The increase of €35.6 million was mainly brought about by a higher contribution towards the treasury clearance fund, added outlays on roads and an increase in the EU agricultural fund for rural development, among others. Conversely, a lower equity injection to the national air carrier was registered.

At the end of August, central government debt stood at €5,390.6 million, up by €323.7 million over the corresponding period last year.

This was the result of higher long-term borrowing, which added €351 million. On the other hand, short-term and foreign borrowing went down by €40.1 million and €10.6 million, respectively.

As a result of consolidation, lower holdings by government funds in MGSs brought about an increase in debt of €18.5 million.

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