By the end of February 2019, Government’s Consolidated Fund registered a deficit of €62.9 million, the NSO said today.
During the first two months of 2019, recurrent revenue amounted to €689.2 million, an increase of €31.3 million. This represented an increase of 4.8 per cent over the €657.9 million reported in revenue during the same period in 2018.
This difference was primarily the result of an increase in Income Tax (€21.6 million) and Social Security (€19.5 million). Other increases were also registered in Value Added Tax (€7.2million), Rents (€2.0 million) and Licences, Taxes and Fines (€0.8 million). Conversely, drops in outlay were recorded under Dividends (€4.8 million), Central Bank of Malta (€4.0 million), Fees of Office (€3.7 million), Reimbursements, Grants (both €2.6 million), Customs and Excise Duties (€1.6 million) and Miscellaneous Receipts (€0.5 million).
Total expenditure at the end of February 2019 stood at €752.1 million, a 17.7 per cent increase over the first two months of 2018. Recurrent expenditure stood at €650.9 million, €73.9 million higher than the corresponding amount reported in the same period last year. The main contributor to this increase was a €53.2 million rise in
Furthermore, rises in outlay were also registered in Personal Emoluments (€14.4 million), Operational and Maintenance Expenses (€3.4 million) and Contributions to Government Entities (€3.0 million).The main developments in the Programmes and Initiatives category involved added outlays due to EU own resources (€24.8 million), social security benefits (€12.4 million), state contribution (€9.0 million that also features as revenue), cancer treatment (€4.0 million), church schools (€2.9 million), residential care in private homes and health concession agreements (both €1.5 million).
A drop of €2.8 million in treasury pensions slightly off set this rise in outlay. The interest component of the public debt servicing costs amounted to €36.7 million, a €0.4 million increase from 2018. Government’s capital expenditure registered an increase of €38.7 million over the same period last year and amounted to €64.5 million.
The rise in outlay was due to added expenditure reported on EU Internal Security Fund - Borders and Visa (€14.6 million), road construction and improvements (€14.2 million), investment incentives (€5.0 million), EU structural funds 2014-2020 (€2.0 million), cattle sheds (€1.8 million), and EU cohesion fund 2014-2020 (€1.4 million).
The difference between total revenue and expenditure resulted in a deficit of €62.9 million being reported in the Government’s Consolidated Fund by the end of February 2019, compared to a surplus of €18.7 million during the same period in 2018. The main catalysts in the difference were increased outlays in both recurrent and capital expenditure.
During February 2019, Central Government Debt stood at €5,440.4 million, an increase of €31.4 million from the corresponding month last year. This was primarily the result of higher Treasury Bills (€198.3 million) and the 62+ Malta Government Savings Bond (€92.6 million). Euro coins issued in the name of the Treasury also rose by €6.1 million.
On the other hand, Malta Government Stocks and Foreign Loans decreased by €240.7 million and €7.9 million respectively. Higher holdings by government funds in Malta Government Stocks also resulted a decrease in debt of €17.0 million.