Recurrent revenue grows by €141 million

Compared to the period between January and October last year, recurrent revenue this year registered an increase of €141.1 million whereas total expenditure went up by €41.4 million. This resulted in a positive change in the government’s consolidated fund by €99.7 million.

Between January and October 2016, recurrent revenue was recorded at €2,907.2 million, an increase from last year’s figures, which stood at €2,766.1 million. The comparative increase of 5.1% was primarily the result of higher income tax and social security, which increased by €110.8 million and €52.0 million respectively.

Other increases were also recorded for licences, taxes and fines (€27.9 million), fees of office (€15.0 million), value added tax (€13.9 million), and customs and excise duties (€13.6 million), among others.

On the other hand, major decreases were recorded in proceeds from grants (€93.4 million).

Compared to January-October last year, total expenditure stood at €3,012 million up from €2,970.6 million, mainly as result of added outlays on recurrent expenditure which outweighed the decreases in capital expenditure and interest payments.

Recurrent expenditure stood at €2,594.5 million, compared to last year when it stood at €2,434.1 million. This increase was mainly the result of programmes and initiatives, which rose by €66.8 million. The main developments in this category involved higher social security benefits (€33.9 million), a rise in the social security state contribution (of €18.1 million which also features as revenue), added outlays due to church schools (€13.4 million), EU Presidency 2017 (€11.8 million), treasury pensions (€4.7 million) and CHOGM (€2.5 million).

However, lower EU own resources were recorded (€19.3 million).

Increases were also registered in contributions to government entities (€37.2 million), personal emoluments (€32.7 million) and operational and maintenance expenses (€23.8 million).

The interest component of the public debt servicing costs stood at €187 million after falling from €195.8 million last year.

The government’s capital expenditure witnessed a decline of €110.2 million, and was recorded at €230.5 million, mainly as the result of lower spending on EU funded projects.

At the end of October 2016, central government debt stood at €5,679.9 million, up by €286.7 million over the corresponding period last year. This was the result of higher Malta government stocks and treasury bills, which added €272.6 million and €74.2 million respectively.

On the other hand, domestic loans with commercial banks and foreign loans went down by €56.4 million and €10.5 million respectively. Lower holdings by government funds in Malta government stocks resulted in an increase in debt of €2 million.

The Euro coins issued in the name of the treasury went up by €4.8 million when compared to the coin stock as at the end of October 2015, and totalled €71.5 million.

This data was compiled by the National Statistics Office.