The government’s consolidated fund registered a deficit of €110.6 million in the six months to June, National Statistics Office figures have shown.
Compared to the same period last year, recurrent revenue registered an increase of €49.7 million whereas total expenditure went up by €2.3 million. This resulted in a positive change in the consolidated fund by 3 million.
In the first six months of 2016, recurrent revenue was recorded at €1,657.1 million, up from €1,607.4 million last year. The comparative increase of 3.1 per cent was primarily the result of higher income tax and added social security by €58.4 million and €36.2 million respectively, the NSO said.
It noted that increases were also recorded for licences, taxes and fines (€21.1 million), VAT (€18.9 million) and customs and excise duties (€17.4 million), among others. Conversely, major decreases were recorded in proceeds from grants (€98.8 million).
Compared to January-June last year, total expenditure stood at €1,767.7 million, up from €1,765.4 million, mainly as a result of added outlays on recurrent expenditure almost outweighed by lower spending on capital expenditure and interest payments.
Recurrent expenditure stood at €1,529.6 million from €1,443.2 million last year. The major contributors to this increase were Programmes and Initiatives with a rise of €31.9 million.
The main developments in this category involved higher social security benefits (€15.3 million), a rise in the social security state contribution (of €10.8 million which also features as revenue), added outlays due to church schools (€10.5 million), CHOGM (€4.4 million) and the provision of spare capacity electricity (€3.5 million). On the other hand, lower EU Own Resources were recorded (€14.3 million). Increases were also registered in Contributions to Government Entities (€23.2 million), Personal Emoluments (€18.3 million) and Operational and Maintenance Expenses (€13.1 million).
The interest component of the public debt servicing costs stood at €111.8 million, down from €116.2 million last year.
Government’s capital expenditure witnessed a decline of €79.8 million, and was recorded at €126.3 million. This was mainly the result of lower spending on EU funded projects mainly those related to sewage and agriculture. Other declines were recorded in the external borders fund and the acquisition of property for public purposes.
At the end of June 2016, Central Government Debt stood at €5,568.3 million, up by €183.5 million over the corresponding period last year. This was the result of higher Malta Government Stocks and Treasury Bills, which added €147.5 million and €82.7 million respectively. On the other hand, Domestic Loans with commercial banks and Foreign Loans went down by €56.4 million and €10.5 million respectively. Lower holdings by government funds in Malta Government Stocks resulted in an increase in debt of €13.5 million.
The Euro coins issued in the name of the Treasury went up by €6.7 million when compared to the coin stock as at the end of June 2015, and totalled €69.6 million.