According to data obtained from the Consolidated Fund of government, the shortfall between recurrent revenue and total expenditure for the first two months of the year increased by e43.4 million, and amounted to e143.0 million when compared to the same period of 2007. An increase of e86.8 million in total expenditure (excluding equity acquisition) was partly offset by an increase of e43.4 million in recurrent revenue.

During January and February, the Consolidated Fund recorded an increase of e13.6 million in revenues from income taxes, while revenues from Fees of Office and from the Central Bank of Malta increased by e5.6 million and by e5.4 million respectively. Dividends on investment also yielded e9 million during the period under review, while no such proceeds were recorded in the corresponding period last year.

Recurrent expenditure amounted to e352.0 million, an increase of e53.5 million compared to January and February 2007. During the first two months this year the major increases in recurrent expenditure were recorded under the Social Security Benefits which added e18.1 million, and under the Ministry for Rural Affairs and the Environment (+e11.5 million).

The interest component of the public debt servicing costs for January and February 2008 increased by e3.9 million, and amounted to e31.8 million.

The government’s outlay on its Capital Programme (excluding equity acquisition) for the first two months of this year amounted to e53.4 million, an increase of e29.5 million when compared to the expenditure of e23.9 million for the same period last year. During the period under review capital expenditure under the Ministry for Investment, Industry and Information Technology, and under the Ministry for Tourism and Culture increased by e9.5 million and e7.7 million respectively.

During the course of the first two months, the government invested e6.5 million in equity in Malta Stock Exchange plc. No new loans were taken up during this period. The Central Government debt outstanding at the end of February amounted to e3,285.5 million, an increase of e108.1 million compared to the gross Central Government debt outstanding at the end of February 2007. While long-term borrowing increased by e136.4 million, short-term borrowing and foreign borrowing declined by e44.2 million and e6.5 million respectively. At the end of February, the stock of euro coins added to the gross government debt amounted to e22.4 million.