The government deficit stood at €224.6 million in the first quarter, an increase of €36.4 million over the same period in 2011.

The deficit is the shortfall between the government’s recurrent revenue and total expenditure.

Revenue actually increased by €33.6 million during the period compared to last year. However, this was outweighed by a rise in expenditure of €70 million, the National Statistics Office said.

Total expenditure stood at €747.4 million, up 10.3 per cent.

An increase of €52 million in recurrent expenditure was mainly driven by higher social security benefits and contributions to government entities, up by €17.1 million and €10.4 million respectively.

Capital expenditure reached €75.4 million, a €20 million increase resulting from an equity injection into Air Malta, which is currently undergoing a restructuring programme.

At the same time, the interest component of the public debt servicing costs for the period declined by €2 million.

However, at the end of March, central government debt stood at €4,669.6 million, up by €354.5 million, or 8.2 per cent, over the corresponding period last year.

This increase was the result of higher long-term borrowing, which added €610.8 million. On the other hand, short-term securities and foreign borrowing declined by €199.7 million and €13.1 million respectively.

Revenue stood at €522.9 million during the period, up by 6.9 per cent over last year.

The main contributors were income tax and social security, with returns going up by €27.5 million and €13.4 million respectively.