The government deficit increased by €77.5 million between January and October when compared to the same period last year, hitting €243.2 million.
This total is already €43 million more than its end-of-year projections announced in the last Budget speech, although the government had said it expects to reduce the gap by the close of 2008.
For this year, the government had originally projected a deficit of 1.2 per cent (€68.4 million) of its Gross Domestic Product. However, in this month's Budget speech, Mr Fenech adjusted this figure to around €200 million.
He had blamed the unforeseen extraordinary expenditure on fuel costs and the Malta Shipyard's early retirement schemes.
The NSO said an increase of €162.4 million in expenditure was the main cause of the deficit growth so far this year. On the other hand, revenue increased by €84.9 million.
Of the revenue received, €84 million came from income taxes, €32.7 from VAT and €21.4 million from social security contributions. Revenue from grants and those classified under miscellaneous receipts fell by €21 million and €13.3 million respectively.
Significant increases in recurrent expenditure were meanwhile recorded in social security benefits (€44 million), under the Health Ministry (€29.9 million) and under the IT Ministry (€23.3 million).
Capital expenditure fell by €9 million, amounting to €181.3 million. But capital expenses increased by €12.2 under the Health Ministry and €10.9 million under the Rural Affairs Ministry.
On the other hand, continued the NSO, expenses in construction and equipment at Mater Dei Hospital brought about a decline of €36.4 million in the capital outlay of the Ministry for Finance.
During the same 10 months, the government took up €285.7 million in loans, of which €93.2 million were on account of matured stock.
The NSO said government debt as at the end of October amounted to €3,543.3 million, an increase of €229.6 million compared to last year.
Long-term and short-term borrowing also increased by €201.1 million and €3.9 million respectively, while foreign borrowing declined by €5.4 million.