Updated | Government deficit up by €30.8 million

Recurrent revenue during January registered a decline of €20.4 million, widening the shortfall between revenue and total expenditure by €30.8 million, the National Statistics Office said.

Government finance data registered a 9.3% decrease in January 2014, down to €198.1 million when compared with the corresponding month last year. January 2013 had registered a €218.5 million revenue.

The comparative decrease of 9.3 per cent was mainly the result of lower returns from Grants (€32.4 million) as well as Licences, Taxes and Fines (€2.6 million). Conversely, added revenue was registered in Income Tax (€8.2 million) together with Customs and Excise Duties (€5.2 million).

In a statement, the Ministry for Finance welcomed the financial figures, accentuating a €12.1 million increase in the major components of recurrent revenue when compared to January 2013.

The ministry said a €32.5 million decline in EU grants "is normally expected to be compensated by a similar and contrary change in capital expenditure in the coming months".

 Total expenditure increased by €10.4 million as envisaged in its 2014 Budget.

"All in all the January financial figures are according to the government projections which are expected to remain on track as they have been over the last 11 months," the ministry said.

The first month of the year also saw an increase of €10.4 million in expenditure, thereby widening the shortfall between recurrent revenue and total expenditure by €30.8 million.

Central government debt stood at €5,017.1 million, up by €251.7 million over the corresponding period last year. This increase was the result of higher long-term and short-term borrowing, which added €259.2 million and €15.3 million respectively while on the other hand, foreign borrowing went down by €11.0 million.

Compared to January 2013, the first month of the year registered higher spending in recurrent and capital expenditures, resulting in an increase in total expenditure of €10.4 million.

Recurrent expenditure went up by €9.2 million, totalling €231.6 million. Higher outlays were mainly registered in Contribution to Government Entities (€4.6 million), Personal Emoluments (€4.0 million) as well as Operational and Maintenance Expenditure (€2.3 million).

Conversely, Programmes and Initiatives went down by €1.7 million, mainly due to lower social security benefits (€23.2 million). These were partially outweighed by added expenditure on medicines and surgical materials (€11.9 million) and the feed-in tariff (€5.0 million).

In addition, Government's Capital Expenditure for January stood at €37.7 million compared to €36.0 million last year. Major increases were registered in the integrated health information system (€1.8 million) and in PC leasing (€1.2 million). These additions were partially offset by a lower equity injection to the national air carrier in January this year.

As a result of consolidation, higher holdings by government funds in MGSs resulted in a reduction in debt of €16.6 million. The euro coins issued in the name of the Maltese Treasury went up by €4.7 million when compared to the coin stock as at the end of January 2013, and totalled €54.9 million.