Deficit down by €78.1 million

The government’s consolidated fund registered a deficit of €204.5 million between January and October, a positive change of €78.1 million when compared to the corresponding ten months last year. 

National statistics show that recurrent revenue recorded an increase of €266.2 million which outweighed the rise in expenditure of €188.2 million.

In the period under review, recurrent revenue was recorded at €2,766.1 million, up from €2,499.9 million last year. The major contributors to the comparative increase of 10.6% were higher proceeds from Customs and Excise Duties (€83.4 million) and Income Tax (€74.8 million). Additionally, increases were registered in Social Security (€29.9 million), Licences, Taxes and Fines (€27.9 million), Value Added Tax (€18.2 million) and Miscellaneous Receipts (€15.2 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 €188.2 million due to higher capital and recurrent expenditures and interest payments.

Recurrent expenditure went up by €162.9 million, totalling €2,434.1 million. Programmes and Initiatives recorded the highest increase at €91.8 million. The major developments in this category involved added expenditure on EU own resources (€17.4 million), followed by outlays on the provision for spare capacity electricity (€14.2 million), social security benefits (€12.4 million), increases in medicines and surgical materials (€11.9 million), social security state contribution, which also features as revenue (€10.3 million), the one-time additional bonus (€7.1 million), contribution towards Church schools (€6.2 million) and child care for all (€6.1 million). Other increases in recurrent expenditure were recorded in Contributions to Government Entities (€29.1 million), Personal Emoluments (€26.0 million) and Operational and Maintenance Expenses (€15.9 million).

The interest component of the public debt servicing costs stood at €195.8 million, up by €3.8 million from last year.

Government’s capital expenditure was recorded at €340.7 million, up by €21.5 million from last year. This increase was mainly due to outlays on the autoclave animal waste facility of €10.9 million, an increase in the acquisition of property for public purposes (€10.4 million), higher enterprise investment incentives (€9.2 million) and added expenditure funded by the external borders fund (€7.7 million), among others. These increases were partially outweighed by a lower equity injection to the national air carrier.

At the end of October 2015, Central Government Debt stood at €5,393.2 million, an increase of €17.4 million over the corresponding period last year. This was the result of higher Malta Government Stocks by €126.2 million, partially outweighed by lower Treasury Bills and Foreign Loans by €74.9 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 €30.0 million. The Euro coins issued in the name of the Treasury went up by €6.7 million when compared to the coin stock as at the end of October 2014, and totalled €66.7 million.