A drop of 14.7 per cent was registered in the shortfall between the central government’s recurrent revenue and total expenditure in the first half of this year.
The National Statistics Office said the contraction of €49.7 million in the government deficit was the result of a rise in recurrent revenue of €88.5 million, partly offset by an additional expenditure of €38.8 million.
During the period under review, recurrent revenue was recorded at €1,057.7 million. The comparative increase of 9.1 per cent was brought about by higher returns from income tax (+€30.6 million), grants (+€25 million), value added tax (+€21.2 million), miscellaneous receipts (+€8.9 million) and customs and excise duties (+€8.7 million).
On the other hand, declines in recurrent revenue were registered in licences, taxes and fines (-€8.7 million) and fees of office (-€5.4 million).
Total expenditure for the first six months stood at €1,345.5 million, up by €38.8 million.
The increase in recurrent expenditure was triggered by a greater outlay on social security benefits of €22.4 million, the reclassification of the Malta Tourism Authority (which shifted €15.1 million from capital to recurrent expenditure) and higher personal emoluments, also by €15.1 million.
Conversely, declines were recorded in the shipyards' voluntary retirement schemes and in medicines and surgical materials, of €17.5 million and €16.9 million respectively.
Capital expenditure went up by €19.8 million. This was mainly due to increases in the EU Cohesion Fund 2007-2013 of €13.3 million relating to the Malta South Sewage Treatment Infrastructure and of €10 million in connection with the introduction of the Jeremie Financial Engineering Fund.
Furthermore, growths were registered in the EU Structural Funds relating to Education, of €7.8 million, and the External Borders Fund, of €6 million. These were in part outweighed by the reclassification of the Malta Tourism Authority.
The interest component of the public debt servicing costs edged up from €96.7 million in January-June 2009 to €98.4 million this year.
At the end of June, Central Government debt stood at €4,104.3 million, a rise of €283.9 million, or 7.4 per cent, over the corresponding month last year. The contributor to this change was long-term borrowing, which added €385.4 million and accounted for 82.1 per cent of total government debt.
Declines were registered in short-term securities and foreign borrowing, of €91.6 million and €13 million, respectively.
The euro coins issued in the name of the Maltese Treasury rose by €3.9 million and totalled €38.8 million when compared to the euro coin stock as at the end of June 2009.