Deficit widens by €129.3 million

According to data obtained from the Consolidated Fund of government, increases were recorded in both recurrent revenue and total expenditure for the first month of the year. Recurrent revenue went up by €22.0 million, while total expenditure increased by €61.2 million, thereby widening the deficit between recurrent revenue and total expenditure to €129.3 million.

During the month under review, recurrent revenue was recorded at €157.6 million, up from €135.6 million last year.

The comparative increase of 16.2 per cent was mainly the result of higher returns from Social Security ( €15.0 million) and Income Tax ( €10.8 million). These increases were partly outweighed by falls in other revenue components.

Conversely, compared to January last year, higher recurrent expenditure and added spending on capital projects resulted in an increase in total expenditure of €61.2 million, to €286.9 million.

Recurrent expenditure rose by €33.7 million, totaling €231.7 million. The highest increase was registered in programmes and initiatives, mainly due to additional social security benefits by €11.9 million. Higher expenditures were also recorded in the contributions to government entities by €8.8 million, operational and maintenance expenditure by €6.5 million and personal emoluments by €2.1 million.

The interest component of the public debt servicing costs for the period under review increased marginally to €18.4 million from €17.9 million last year.

In addition, Government's Capital Expenditure for the period under review reached €36.7 million from €9.7 million last year. In line with European System of Accounts (ESA 95) guidelines, this includes an equity injection of €20.0 million to the national air carrier. Moreover, increases were also registered in PC leasing of €2.7 million and the acquisition of public property of €1.3 million.

The Central Government debt outstanding at the end of January totaled €4,442.6 million, up by €214.8 million compared to January last year. Long-term borrowing rose by €442.7 million, while short-term borrowing and foreign loans declined by €219.6 million and €13.1 million respectively. The euro coins issued in the name of the Maltese Treasury, which are considered as a currency liability pertaining to the Central Government, amounted to €45.3 million, €4.7 million more compared to the coin stock as at end January 2011.