Government's deficit at €188.9 million

Recurrent revenue registered an increase of €330.6 million, which offset the increase of €212.2 million in expenditure when compared to the corresponding period last year, thereby narrowing the shortfall between recurrent revenue and total expenditure by €118.4 million.

During the first eleven months, recurrent revenue was recorded at €2,895.4 million, up by 12.9 per cent over last year. The main contributors to this increase were Customs and Excise Duties which went up by €111.6 million, mainly following the receipt of excise arrears. Moreover, as shown in Table 1, other major increases were registered in Income Tax (€57.3 million), Social Security Contributions (€50.7 million), Value Added Tax (€42.1 million) and Grants (€26.2 million).

Recurrent expenditure increased by €177.8 million, mainly as a result of higher spending on Programmes and Initiatives (€85.3 million). The major increases registered in the Programmes and Initiatives category were recorded in the public service obligations (€20.6 million), social security state contribution, which also feature as revenue (€16.6 million), medicines and surgical materials (€12.5 million), social security benefits (€9.2 million), child care for all (€4.7 million) and the ex-gratia grant scheme for motor vehicles (€3.2 million), among others. In addition, Personal Emoluments and Contributions to Government Entities increased by €48.1 million and €36.4 million respectively. Operational and Maintenance Expenditure went up by €7.9 million.

The interest component of the public debt servicing costs for the period under review amounted to €210.6 million, an increase of €3.2 million over last year.

Expenditure on Government’s capital projects amounted to €370.5 million. The increase of €31.2 million was mainly brought about by added outlays on EU funded capital projects primarily involving road works and the procurement of a helicopter. Conversely, a lower equity injection to the national air carrier was registered.

At the end of November, Central Government debt stood at €5,261.7 million, up by €196.8 million over the corresponding period last year. This was the result of higher Long-term Borrowing, which added €290.3 million. On the other hand, Short-term and Foreign Borrowing went down by €87.4 million and €10.5 million respectively. As a result of consolidation, higher holdings by government funds in MGSs brought about a fall in debt of €0.9 million. The euro coins issued in the name of the Maltese Treasury went up by €5.2 million when compared to the coin stock as at the end of November 2013, and totalled €60.3 million.