The shortfall between recurrent revenue and total expenditure for the first eight months of 2007 amounted to Lm70.5 million, the National Statistics Office reported on Friday.

Data from the Government Consolidated Fund indicate that the shortfall between recurrent revenue and total expenditure for the first eight months of the year compared to the same period last year increased by Lm1.3 million and amounted to Lm70.5 million.

The increase in total expenditure was Lm17.7 million while that in respect of recurrent revenue was Lm16.4 million. When compared to the same period in 2006 Income Tax revenue rose by Lm23.3 million to Lm156.6 million. Revenue from Social Security Contributions and from Value Added Tax increased by Lm4.9 million and Lm3.1 million respectively. Revenue from Grants declined by Lm25.1 million for the period under review.

Recurrent expenditure amounted to Lm519.6 million, an increase of Lm21.8 million over the same period last year. This increase was underpinned by higher outlays of Lm8.9 million on Social Security Benefits and by increases of Lm7.1 million under the Family and Social Solidarity Ministry , the latter mainly on account of Government’s energy support measures.

Lower interest payments on government’s long-term borrowing resulted in a decline of Lm0.8 million in public debt servicing costs. Total interest payments for the period under review amounted to Lm52.3 million.

Capital Expenditure for the January to August period amounted to Lm66.1 million, a decline of Lm3.3 million when compared to the same period in 2006. Lower capital outlays by the Finance Ministry (-Lm6.2 million), were in part offset by higher expenditures under the Rural Affairs and the Environment Ministry (+Lm1.7 million) and the Urban Development and Roads Ministry (+Lm0.9 million).

When compared to August 2006, central government debt as at end August this year increased by Lm40.8 million, to stand at Lm1,401.5 million. When compared to the same period one year ago, foreign borrowing decreased by Lm10.1 million, while

Treasury Bills and Government Stock increased by Lm27.8 million and Lm23.6 million respectively