The government deficit in the first nine months of the year amounted to €258.3 million, €87.6 million more than in the same months last year, the NSO said today. Government debt increased by €270.6m (8.3%) by the end of September compared to the end of September last year.
The National Statistics Office said that an increase of €169.4 million in total expenditure was partly offset by an increase of €81.8 million in recurrent revenue.
During the first nine months this year, the Consolidated Fund recorded increases in revenue of €67.5 million from income tax and of €27 million from VAT.
Revenue from social security contributions also added €21.3 million during the period under review. At the same time, revenue from grants declined by €15.9 million while revenue classified under miscellaneous receipts declined by €10.3 million.
Recurrent expenditure amounted to €1,524.1 million, an increase of €166.8 million compared to the first nine months last year. Significant increases in recurrent expenditure were recorded under social security benefits (+€43.3 million), under the Ministry of Health, the Elderly and Community Care (+€31.7 million), and under the Ministry for Investment, Industry and Information Technology (+€23.3 million).
During the period under review the interest component of the public debt servicing costs amounted to €156.1 million, a comparative increase of €9.4 million over 2007.
The capital programme for the first nine months this year declined by €6.8 million and amounted to €163.9 million. During this period capital expenditure under the Ministry of Health, the Elderly and Community Care increased by €13.2 million, while capital expenditure under the Ministry for Investment, Industry and Information Technology increased by €9.2 million.
On the other hand, lower expenditure in respect of construction works and equipment under the Mater Dei Hospital project brought about a decline of €36.6 million in the capital outlay of the Ministry of Finance.
Loans taken up by the government during the first nine months of the year amounted to €232.7 million, of which €93.2 million were on account of matured stock.
Government debt outstanding at the end of September amounted to €3,518.1 million, an increase of €270.6 million compared to the gross government debt outstanding at the end of September last year.
Long-term and short-term borrowing increased by €206.7 million and by €40.4 million respectively, while foreign borrowing declined by €5.9 million. At the end of September, the euro coins issued in the name of the Maltese Treasury, considered as a currency liability pertaining to the Central Government, amounted to €29.6 million.