Higher revenue in the first seven months of the year led to a strong improvement in the government’s deficit, which dropped by €134.6 million when compared to the corresponding period last year.

Data published yesterday by the National Statistics Office showed that, between January and July, the Consolidated Fund had a deficit of €174.9 million, well below the €309.5 million recorded in 2014.

Higher proceeds from grants, Customs and excise duties and income tax were the major contributors to the increase in revenue.

On the other hand, the outlay on personal emoluments increased by €22.7 million.

Sensible financial management was having a positive impact on the national debt

At the end of July, the central government’s debt stood at €5.4 billion, an increase of €134.3 million over July 2014. In a statement, the government hailed the finance data published yesterday, pointing out that the deficit in this seven-month period was half that posted in the corresponding timeframe in 2012, when the PN was still in government.

It also noted that efforts to increase the absorption of EU funds were successful as there was a significant increase in revenue from grants. In addition, tax proceeds were also up in spite of the downward revision in the income tax bands.

Reacting to criticism levelled by the Opposition that recurrent expenditure was soaring, the government said that, in the period under review, this was much lower than the 9.1 per cent increase registered in 2012.

Sensible financial management was having a positive impact on the national debt, the government said. This contrasted sharply with the average monthly increase of €100 million registered at the time when Simon Busuttil was PN deputy leader, it pointed out.