Increase In shortfall between revenue and expenditure

Malta Independent Saturday, 28 February 2009, 00:00 Last update: about 18 years ago

The shortfall between recurrent revenue and total expenditure of Central Government for the first month this year amounts to e136.5 million, the National Statistics Office reported yesterday.

According to data obtained from the Consolidated Fund of Government for the first month of the year, the shortfall between recurrent revenue and total expenditure increased by e73.7 million when compared to January 2008 and amounted to e136.5 million. Recurrent revenue decreased by e17.1 million, while total expenditure increased by e56.6 million.

In January, the Consolidated Fund recorded decreases in income tax (-e11.0 million), Fees of Office (-e5.8 million), Social Security Contributions (-e2.9 million) and Grants (-e2.6 million). At the same time, revenues from Value Added Tax and Rents increased by e3.9 million and e2.1 million respectively.

Recurrent expenditure during the first month amounted to e227.4 million, an increase of e45.5 million compared to the same month last year. This increase was mainly brought about by increases on Social Security Benefits (+e14.5 million), the shipyards’ early retirement schemes (+e17.5 million) and expenditure on medicines and surgical materials (+e7.8 million). Other increases were recorded under the personal emoluments and operational and maintenance expenses categories, which increased by e2.2 million and e4.0 million

respectively.

The interest component of the public debt servicing costs for January increased by e3.9 million and amounted to e17.8 million.

During the first month of 2009, Capital Expenditure amounted to e24.4 million, an increase of e7.2 million when compared to the expenditure of e17.2 million for January 2008. Main comparative increases were recorded for Film Industry Incentives (+e4.9 million) and WasteServ Malta (+e3.0 million).

The Central Government debt outstanding at the end of January amounted to e3,581.9 million, an increase of e322.8 million compared to January last year. Long-term and short-term borrowing increased by e201.1 million and e120.3 million respectively, while foreign borrowing declined by e7.0 million. The euro coins issued in the name of the Maltese Treasury, which are considered as a currency liability pertaining to the Central Government, amounted to e32.3 million, an increase of e9.0 million over the same period last year.