Deficit down by €83.9 million over 2010 period

In January-July 2011, recurrent revenue increased by €73.9 million, while total expenditure registered a decline of €9.9 million, resulting in an improvement in the government deficit when compared to the corresponding period last year.

During the period under review, recurrent revenue stood at €1,325.0 million, up by 5.9 per cent over last year. The major increases were registered in Customs and Excise duties (+€29.6 million), Grants (+€19.1 million), Social Security (+€17.4 million) and Value Added Tax (+€16.0 million). Conversely, a reduction in proceeds was recorded from Income Tax (-€8.2 million).

Total expenditure stood at €1,563.2 million, down by €9.9 million when compared to the first seven months last year, as a result of lower outlays on capital expenditure. On the other hand, interest payments and recurrent expenditure recorded increases.

The increase of €6.5 million in recurrent expenditure was driven by higher spending on State Contribution (+€7.2 million), personal emoluments (+€6.5 million), public service obligations (+€4.3 million) and medicines and surgical materials (+€3.8 million). These were partly eclipsed by lower outlays on social security benefits (-€10.0 million) and contributions to government entities (-€6.1 million).

Capital expenditure was recorded at €139.6 million, down from €163.2 million last year. The lower capital expenditure occurred as a result of the completion of the Malta South Sewage Infrastructure.

The interest component of the public debt servicing costs for the period under review increased by €7.2 million to €124.0 million.

As illustrated in Table 3, at the end of July, Central Government debt stood at €4,425.1 million, up by €296.2 million, or 7.2 per cent, over the corresponding period last year. This was the result of higher long-term borrowing, which added €554.8 million. On the other hand, short-term securities and foreign borrowing decreased by €250.3 million and €13.2 million respectively.

The euro coins issued in the name of the Maltese Treasury went up by €4.1 million when compared to the euro coin stock as at the end of July 2010, and totalled €43.8 million.