Education costs were up €23.5 million, the increase mainly going in the tertiary and secondary sectors. Photo: Chris Sant Fournier

Total government expenditure in 2013 reached €3,196.3 million, an increase of €133.8 million over the previous year, according to figures by the National Statistics Office.

Social benefits was the big money grabber in the period under review, accounting for 33 per cent of the whole bill, followed by public services, education and health.

Public spending on social welfare grew by €49.4 million, primarily due to pensions, which totalled €625.5 million and represented 59.3 per cent of social welfare expenditure.

The health bill increased by €38.4 million, mainly due to hospital services, which absorbed €280.3 million and constituted 64.8 per cent of health spending.

The expenditure for economic affairs rose by €28.2 million as a result of a higher equity injection in Air Malta as part of the financing package.

Education costs were up €23.5 million, the increase mainly going in the tertiary and secondary sectors.

Partly offsetting these costs was a fall in general public services (which include public debt transactions as well as executive and legislative organs and financial, fiscal and external affairs) and housing and community amenities.

Housing and community amenities had the lowest contribution to total expenditure, followed by defence – 0.8 per cent and 1.6 per cent, respectively.

In total, public spending declined marginally to 42.4 per cent of the gross domestic product in 2013 from 42.5 per cent a year earlier.

Moreover, considerable outlay was registered on public debt transactions (€223.3 million) and executive and legislative organs and financial, fiscal and external affairs (€196.6 million).

Finance Minister Edward Scicluna said the government was “successfully containing public expenditure” while sustaining crucial education, health and social protection programmes.

Expenditure increased by €133.8 million over the previous year, €100 million below 2012, when it increased by €242.3 million.

Of the €133.8 million increase in 2013, over €111 million was invested in social protection, health and education.

This represented 83 per cent of the total increase in expenditure, which was allocated to essential State services, the ministry said.

Furthermore, the ratio of public expenditure as a percentage of the GDP fell marginally from 42.5 per cent in 2012 to 42.4 per cent in 2013. It was expected to remain stable in 2014, the ministry said.

“These latest official figures further dismiss the Opposition’s claims on allegedly uncontrolled government expenditure due to higher outlay on recruitment in the public sector in its first year of government. “On the contrary, the general government expenditure ratio has decreased.

“Expenditure is largely driven by increased commitments and resources in priority sectors and essential services,” the ministry concluded.