Recurrent revenue outweighs rise in expenditure in 2014

Compared to January-September 2014, recurrent revenue recorded an increase of €285.6 million which outweighed the rise in expenditure of €163.3 million, hence resulting in a positive change in the Government’s Consolidated Fund of €122.3 million.

In the first three quarters of this year, recurrent revenue was recorded at €2,512.9 million, up from €2,227.3 million last year. The major contributors to the comparative increase of 12.8 per cent were higher proceeds from Customs and Excise Duties (€74.3 million) and Income Tax (€71.9 million).

Additionally, increases were registered in Value Added Tax (€31.9 million), Licences, Taxes and Fines (€29.9 million), Social Security (€28.2 million) and Grants (€23.9 million), among others. Conversely, proceeds from the Central Bank of Malta recorded a decline of €2.0 million.

Compared to the same period last year, total expenditure increased by €163.3 million primarily due to higher recurrent and capital expenditures.

Recurrent expenditure went up by €137.8 million, totalling €2,197.9 million. Programmes and Initiatives recorded the highest increase at €75.1 million.

The major developments in this category involved added expenditure on EU own resources (€20.4 million), followed by outlays on the provision for spare capacity electricity (€10.6 million), increases in medicines and surgical materials (€9.8 million), social security benefits (€9.4 million), the one-time additional bonus (€7.1 million), social security state contribution, which also features as revenue (€6.2 million), contribution towards Church schools (€5.2 million) and child care for all (€4.9 million).

Other increases in recurrent expenditure were recorded in Personal Emoluments (€28.4 million), Contributions to Government Entities (€17.9 million) and Operational and Maintenance Expenses (€16.5 million).

The interest component of the public debt servicing costs stood at €173.4 million, up by €1.4 million from last year.

Government’s capital expenditure was recorded at €303.3 million, up by €24.1 million from last year. This increase was mainly due to outlays on the autoclave animal waste facility (€10.2 million), added expenditure funded by the external borders fund (€6.9 million), the acquisition of property for public purposes (€5.4 million) and enterprise investment incentives (€4.8 million), among others. These increases were partially outweighed by a lower equity injection to the national air carrier.

At the end of September 2015, Central Government Debt stood at €5,406.3 million, an increase of €58.9 million over the corresponding period last year.

This was the result of higher Malta Government Stocks by €167.5 million, partially outweighed by lower Treasury Bills and Foreign Loans by €56.0 million and €10.6 million respectively. As a result of consolidation, higher holdings by government funds in Malta Government Stocks resulted in a reduction in debt of €48.0 million.

The Euro coins issued in the name of the Treasury went up by €5.9 million when compared to the coin stock as at the end of September 2014, and totalled €65.4 million.