The shortfall between the government's recurrent revenue and total expenditure in the first seven months this year amounted to €333.3 million, an increase of €95.1 million compared to the corresponding period last year.

The National Statistics Office said the increase in recurrent revenue of €72.4 million was outweighed by a rise in total expenditure of €167.5 million, widening the government deficit.

During the period under review, recurrent revenue stood at €1,397.4 million, a rise of 5.5 per cent over last year. Total expenditure was recorded at €1,730.7 million, up by 10.7 per cent, as a result of higher outlays on all expenditure components.

Recurrent expenditure increased by €118.7 million.

Government's Capital Expenditure for the period under review amounted to €182 million. When compared to the corresponding period in 2011, the increase of €42.4 million was mainly triggered by an equity injection of €20 million Air Malta and an increase of €11.2 million in EU funds related to the Ministry for Infrastructure, Transport and Communication, which included works on roads infrastructure.

The interest component of the public debt servicing costs recorded an increase of €6.4 million.

At the end of July, central government debt stood at €4,816.8 million, up by €391.7 million, or 8.9 per cent, over the corresponding period last year.

This increase was the result of higher long-term borrowing, which added €505 million. On the other hand, short-term securities and foreign borrowing declined by €50.8 million and €12.6 million, respectively.

Moreover, as a result of consolidation, higher holdings by government funds in MGSs resulted in a reduction of €54.2 million.