Updated 4.50pm - Added OPM statement
Government’s Consolidated Fund registered a surplus of €31.1 million between January and August.
The National Statistics Office said that compared to the same period last year, recurrent revenue registered an increase of €261.2 million whereas total expenditure went up by €150.9 million. This resulted in a positive change of €110.2 million in the government’s consolidated fund.
In comments hailing the NSO figures, Prime Minister Joseph Muscat said the budget surplus confirmed the government's hard work was paying off.
He said the surplus would not change the government's plans, with electoral pledges rolled out over the legislature's five-year term and the final touches currently being applied to the upcoming Budget.
Budget 2018, Dr Muscat said, would build on previous ones.
"We shouldn't tighten our belts just because the general election is over," the Prime Minister said in the Estonian capital Tallinn, where he is attending a Digital Summit.
Recurrent revenue during the period was recorded at €2,583.8 million, up from €2,322.6 million last year. The comparative increase of 11.2 per cent was primarily the result of higher income tax and value added tax which increased by €62.1 million and €43.2 million respectively.
Compared to January-August last year, total expenditure stood at €2,552.7 million up from €2,401.8 million due to added outlays on recurrent expenditure which outweighed lower spending on capital expenditure and interest payments.
Recurrent expenditure stood at €2,221.6 million from €2,063.7 million last year. The main contributors to this increase were Programmes and Initiatives and Personal Emoluments with a rise of €133.7 million and €25.6 million respectively.
Government’s capital expenditure witnessed a decrease of €1.6 million, and was recorded at €186.7 million. This was mainly the result of lower spending on film industry incentives (€6.2 million) and EU external borders fund (€3.8 million).
At the end of August, central government debt stood at €5,545.5 million, down by €9.1 million over the corresponding month last year. This was the result of higher Malta Government Stocks and euro coins issued in the name of the Treasury, which added €155.7 million and €6.8 million respectively.
On the other hand, Treasury Bills and Foreign Loans went down by €139.2 million and €10.4 million respectively. Higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €22.1 million.