The government’s deficit in January amounted to €89 million, the National Statistics Office said this morning.
It said that recurrent revenue registered a decline of €20.4 million while expenditure increased by €10.4 million when compared to the corresponding month last year, thereby widening the shortfall between recurrent revenue and total expenditure by €30.8 million.
During the first month this year, recurrent revenue was recorded at €198.1 million, down from €218.5 million last year. The comparative decrease of 9.3 per cent was mainly the result of lower returns from grants (€32.4 million) as well as licences, taxes and fines (€2.6 million).
Conversely, added revenue was registered in income tax (€8.2 million) together with customs and excise duties (€5.2 million).
Compared to January last year, higher spending was registered in recurrent and capital expenditures, resulting in an increase in total expenditure of €10.4 million.
Recurrent expenditure went up by €9.2 million, totalling €231.6 million.
The interest component of the public debt servicing costs declined to €17.8 million from €18.3 million last year.
Government’s capital expenditure for January stood at €37.7 million compared to €36 million last year. Major increases were registered in the integrated health information system (€1.8 million) and in PC leasing (€1.2 million).
These additions were partially offset by a lower equity injection to the national air carrier in January this year.
At the end of January, central government debt stood at €5,017.1 million, up by €251.7 million over the corresponding period last year. This increase was the result of higher long-term and short-term borrowing, which added €259.2 million and €15.3 million respectively.
On the other hand, foreign borrowing went down by €11 million.
As a result of consolidation, higher holdings by government funds in MGSs resulted in a reduction in debt of €16.6 million.
In a statement, the Finance Ministry welcomed the figures saying they showed that, in January, the major components of recurrent revenue increased by €12.1 million when compared to the corresponding month last year.
All in all, the January financial figures were according to the government projections which were expected to remain on track as they had been over the last 11 months, it said.