The government had a shortfall of €256.3 million between recurrent revenue and total expenditure in the first half of this year, official figures published today show. That is an increase of €80.1 million when compared to the same period of 2007.
The NSO said that an increase of €137.8 million in total expenditure was only partly offset by an increase of €57.7 million in recurrent revenue.
The Consolidated Fund recorded increases in revenue of €26.2 million and of €16.1 million from income tax and from Value Added Tax respectively. Social Security Contributions also added €12.1 million. At the same time, revenue from licences and fines declined by €6.5 million while revenue classified under Miscellaneous Receipts declined by €9.9 million.
Recurrent expenditure amounted to €1,033.6 million, an increase of €123.2 million compared to the first six months last year. Major increases were recorded in spending on social services, which added €38.5 million.
Expenditure under the Ministry of Health, the Elderly and Community Care and the Ministry for Investment, Industry and Information Technology added €19.7 million and €10.2 million respectively.
During the period under review the interest component of the public debt servicing costs amounted to €93.6 million, a comparative increase of €4.1 million over the first half of 2007.
The Capital Programme for the first six months this year added €10.5 million and amounted to €119.5 million.
New loans were taken up by government for the first six months this year (all taken up in June) amounted to €106.0 million. The government debt outstanding at the end of June amounted to €3,468.8 million, an increase of €131.2 million compared to the gross government debt outstanding at the end of June last year. While long-term borrowing increased by €149.4 million, short-term borrowing and foreign borrowing declined by €38.0 million and €6.4 million respectively. At the end of June, the euro coins issued in the name of the Maltese Treasury, which are considered as a currency liability pertaining to the Central Government, amounted to €26.7 million