The shortfall between the government's recurrent revenue and total expenditure in the first half of the year amounted to €190.2 million, down by €97.5 million when compared to the corresponding period last year.
The National Statistics Office said that between January-June this year, recurrent revenue increased by €82.8 million, while total expenditure registered a decline of €14.7 million, resulting in an improvement in the government deficit when compared to the corresponding period last year.
During the period under review, recurrent revenue stood at €1,140.6 million, up by 7.8 per cent over last year.
The major increases were registered in customs and excise duties (+€31.4 million), value added tax (+€22 million), and social security (+€21.9 million).
Conversely, a reduction in proceeds was recorded from income tax (-€8.1 million).
Total expenditure stood at €1,330.8 million, down by €14.7 million when compared to the first six months last year, as a result of lower outlays on capital and recurrent expenditures.
Interest payments recorded an increase.
The decline of €3.1 million in recurrent expenditure was driven by lower contributions to government entities and social security benefits, by €19.1 million and €11.7 million, respectively.
These were partially outweighed by increases in the state contribution (+€6.7 million), public service obligations (+€4.2 million), medicines and surgical materials (+€4.2 million), an administrative fee to Transport Malta (+€3.4 million), contribution to church schools (+€2.3 million) and Electoral Commission activities (+€1.5 million).
More spending was also registered in personal emoluments by €5.9 million.
Capital expenditure was recorded at €121.9 million from €139.8 million registered last year.
The lower expenditure on capital projects by €17.9 million was triggered by the completion of the Malta south sewage infrastructure.
Increases in capital expenditure include the EU Agricultural Fund for rural development (+€3.8 million) and the ICT core services agreement (+€2.4 million).
The interest component of the public debt servicing costs for the period under review increased by €6.3 million and reached €104.7 million.
At the end of June 2011, the central government debt stood at €4,433.5 million, up by €329.2 million, or eight per cent, over the corresponding period last year.
This was the result of higher long-term borrowing, which added €553.6 million.
On the other hand, short-term securities and foreign borrowing decreased by €215.5 million and €13.3 million respectively.