The deficit for the first eight months of this year decreased to almost half that recorded last year while a surplus of €61.9 million was recorded in the consolidated fund during the month of August.

The data emerged from the latest Government Finance Data issued today by the National Statistics Office covering January to August.

During the same period, the consolidated fund deficit decreased to €79.1 million from the €141 million recorded in the corresponding period of last year, as government expenditure increased by €38.3 million or 1.6 per cent, while recurrent revenue increased by €100.2 million or 4.5 per cent.

Recurrent revenue continued to be strong with revenue from taxes increasing by €200.5 million. This reflected the robust economic growth rate recorded in the first half of this year supported by strong increases in consumption, investment and employment.

The increase in net revenue was achieved in spite of the significant fall in EU grants reflecting the closure of the EU financing period 2007-2013 at the end of last year, the government said. 

Finance Minister Edward Scicluna said the latest figures confirm that the government is steering the country's finances in the right direction with expenditure increasing at a lower rate than revenue.

"As a result, both the deficit and the public debt burden are gradually falling, contrary to what the Opposition has been alleging.”