A deficit of €3.1 million was registered by the government’s consolidated fund between January and August, according to the National Statistics Office.
In the same period in 2017, Malta had a surplus of €31.1 million.
The NSO said that compared to the same period in 2017, recurrent revenue rose by €160.3 million whereas total expenditure went up by €194.6 million. This resulted in a negative change of €34.2 million in the consolidated fund.
During the period, total recurrent revenue amounted to €2,744.1 million, 6.2 per cent more than the €2,583.8 million recorded in 2017. The increase was primarily the result of higher income tax and social security which increased by €87.6 million and €48.4 million respectively.
Increases were also registered under value added tax (€40 million), licences, taxes and fines (32.4 million), customs and excise duties (€8.7 million), reimbursements (€4.9 million) and dividends on investment(€4.2 million).
Drops in revenue were mainly recorded in grants (€43.4 million), fees of office (€14 million), Central Bank of Malta (€8 million) and miscellaneous receipts (€0.6 million).
Compared to January-August 2017, total expenditure stood at €2,747.2 million up from €2,552.7 million due to added outlays on recurrent expenditure and capital expenditure which outweighed lower spending on interest payments.
Recurrent expenditure totalled €2,395.3 million, €173.8 million more than the €2,221.6 million reported by the end of August 2017. The main contributor was a €93.9 million rise under programmes and initiatives.
It was partially offset by drops in outlay reported under EU presidency 2017 and EU own resources.
The interest component of the public debt servicing costs stood at €139.1 million, a drop from the €144.4 million reported last year.
Governments capital expenditure witnessed an increase of €26.1 million from the same period last year, and was recorded at €212.8 million. This was mainly the result of higher spending on investment incentives (€22.8 million), road construction and improvements (€17.9 million), structural funds 2014-2020 and EU agricultural funds for rural development 2014-2020 (both €5 million).
Conversely, lower expenditures were recorded under EU internal security fund – borders and visa (€10.1 million), EU cohesion fund 2007-2013 (€6.8 million), and construction, adaptation and refurbishment works carried out at the University of Malta or Junior College (€5.9 million).
By the end of August, central government debt stood at €5,336.2 million, down by €209.3 million over the corresponding month last year. This was the result of lower Malta government stocks and foreign loans which decreased by €590.3 million and €10.4 million respectively.
Higher holdings by government funds in Malta government stocks also resulted in a decrease in debt of €2.1 million.
Treasury Bills added €195.1 million, the 62+ Malta government savings bond added €192.9 million, and euro coins issued in the name of the treasury increased by €5.6 million.