During the first eight months of 2006, there was a Lm22 million decrease in the shortfall of government recurrent revenue to total expenditure.

The shortfall of recurrent revenue to total expenditure amounted to Lm69.2 million during the January-August 2006 period, a decrease of Lm22.0 million over the same period last year, mainly attributable to higher revenues and lower capital expenditure.

During the first eight months of 2006, recurrent revenue totalled Lm551.1 million, an increase of Lm20.6 million when compared to the same period last year.

This increase was due to higher receipts from income tax, social security contributions, licences, excise duties and consumption tax. These were contrasted by decreases in revenues from miscellaneous receipts, fees of office and the Central Bank of Malta.

Recurrent expenditure amounted to Lm497.8 million, an increase of Lm13.0 million compared to last year.

This reflected a Lm9.4 million rise in outlays on social security benefits and marginal increases in personal emoluments and operational and maintenance expenditure. Contributions to government entities declined by Lm5.2 million.

Interest payments on public debt amounted to Lm53.0 million, an increase of Lm2.3 million over the same period last year.

Capital expenditure decreased by Lm16.7 million mainly due to lower outlays recorded under: urban development and roads; the new hospital project; justice and home affairs; and tourism and culture; and education, youth and employment. On the other hand, higher expenditure was registered under industry and information technology.

The debt of Central Government at the end of August amounted to Lm1.360.7 million, a decrease of Lm49.9 million compared to the same month last year. This reflected a reduction in treasury bills, partly offset by an increase in Malta Government Stocks.