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Government deficit improves and revenue increases
Government’s deficit improves as total expenditure declines by €9.3 million and continued revenue increases by €93.8 million during the first eight months of 2011.
When compared with 2010, recurrent revenue and total expenditure of Central Government amounted to €172.2 million in 2011, down by €103.1 million, according to the NSO.
Regular revenue stood at €1,603.7 million, up by 6.2 per cent in comparison to 2010. Value Added Tax registered key increases with more than €44.9 million, Customs and Excise duties registered more than €30.1 million, Grants recorded an increase of €18.8 million, and more than €16.6 million was registered for Social Security. Less than €19.8 million in proceeds was recorded from Income Tax displaying a reduction.
When compared to the first eight months of 2010, Total expenditure stood at €1,776.0 million, down by €9.3 million as a result of lower outlays on capital expenditure. In contrast, increases were recorded in recurrent expenditure and interest payments.
Higher spending in personal emoluments accounted for the larger part of the increase of €12.8 million in recurrent expenditure, as well as social security state contribution (more than €4.8 million), medicines and surgical materials (more than €6.6 million) and public service obligations (more than €3.7 million). Lower outlays on social security benefits, recorded at less than €9.1 million, partly offset the recurrent expenditure.
Down from €189.7 million recorded in 2010, capital expenditure was recorded at €163.1 million. Due to the completion of the Malta South Sewage Infrastructure, the lower expenditure of €26.6 million was recorded for capital projects.
The interest component increased by €4.5 million and reached €137.9 million for the public debt servicing costs during the first eight months of 2011.
At the end of August 2011, Central Government debt stood at €4,415.9 million, up by €169.3 million, or 4.0% compared with 2010 as a result of higher long-term borrowing, adding €375.6 million.
Short-term securities and foreign borrowing decreased by €197.6 million and €13.3 million respectively. The euro coins issued in the name of the Maltese Treasury went up by €3.9 million
Luke Camilleri •
My all time favourite quote-
Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.
Ron Paul
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Revenue has increased while the economy stagnated even further. These numbers are not to be trusted.
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Oh, very good news and in a very appropriate time coming a couple of weeks before the presentation of the budget for 2012.
Although the Central Government debt which stands at €4,415.9 million is definitively no joke, hope that the deficit improvement bonanza will be cascaded down the line to be realistically felt by john citizen.
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What has MOODYs has to say about that?
