The government registered a deficit of €50 million in the third quarter last year compared to a deficit of €36.4 million for the same quarter in 2007, the National Statistics Office said.

It said that during the September quarter of 2008 total revenue amounted to €559.2 million, an increase of €52.2 million compared to the third quarter of 2007. The main increase was recorded under ‘current taxes on income, wealth, etc.’ which added €55.2 million. Underpinned by higher VAT revenues, ‘taxes on production and imports’ added €9.9 million. On the other hand ‘transfers receivable’ declined by €9.1 million, mainly on account of less grants received.

Total expenditure during this quarter amounted to €609.2 million, a comparative increase of €65.7 million. This increase was brought about by increases in social benefits (+€28.2 million), intermediate consumption (+€22.5 million), compensation of employees (+€9.2 million) and property income payable (+€1.6 million).

When analysed on a year-to-date basis (January-September), the deficit for 2008 increased by €122.9 million, and amounted to €230.9 million. An increase of €209.7 million in total expenditure during the quarter was partly offset by a corresponding increase of €86.7 million in revenue.

When compared to September 2007, total general government debt outstanding at the end of September 2008 increased by €251.2 million, and amounted to €3,575.9 million. This increase was underpinned by the higher long-term securities category (Malta Government Stocks) which added €205.9 million, while short-term securities (Treasury Bills) increased by €40.4 million.

As from December 2007, the euro coins issued in the name of the Treasury started being considered as a currency liability pertaining to the central government. At the end of September 2008, this liability amounted to €29.6 million.