Government spending shot up by 12 per cent in October 2017 compared to the previous year, statistics released by the Central Bank of Malta show.
According to the Central Bank's December economic update, the consolidated fund balance registered a deficit of €52.5 million, an increase of €10.9 million compared with the deficit registered in October last year.
This was due to government expenditure outpacing revenue, the Central Bank said.
As a result, the primary deficit widened by €9.1 million to €33.4 million, figures show.
The Central Bank said total government expenditure in October increased by €36.3 million, or 12 per cent, compared to a year earlier.
This, the Central Bank said, was largely on account of higher recurrent expenditure. That increase was largely due to higher contributions to government entities, as well as increased outlays on programmes and initiatives.
These initiatives included compensation paid to former government employees and the police corps.
Capital expenditure also rose by €2.3 million.
In October, total government debt increased by €45 million compared to a month earlier, reaching €5.6 billion.
This occurred partly because the government extended by €29.7 million the 62+ government savings bond issue, the Central Bank said.
The economic update said consumer price pressures picked up in October, with the annual rate of HICP inflation rising to 1.5 per cent from 1.2 per cent a month earlier.
In particular, services inflation rose, reflecting faster growth in the prices of a number of items such as housing services and accommodation.
In November, the Bank’s Business Conditions Index (BCI) signalled a slight improvement in activity levels over the previous month.
Economic sentiment also rose, as improved confidence in the retail and industry sectors and among consumers offset weaker confidence within the construction and services sectors, though they were still at a very high level.
In October, retail sales and tourism activity grew at a slower pace in annual terms, while industrial production declined. Labour market conditions remained favourable.
The number of registered unemployed persons edged down further.