Government deficit down

The general government deficit for the third quarter of 2006 amounted to Lm1.9 million, compared to a deficit of Lm2.7 million in the same period in 2005, the National Statistics Office said yesterday.

Total expenditure increased by Lm7.8 million (mainly due to higher outlays on social benefits and on interest payments) while recurrent revenue rose by Lm8.6 million. With an increase of Lm6.1 million, taxes on income and wealth were the main contributors to revenue.

The deficit for the first nine months of 2006 amounted to Lm64.9 million, a drop of Lm32.6 million compared to the same period of the previous year. The general government sector's revenue during the January-September 2006 period registered a comparative increase of Lm39 million, which was contrasted by an increase of Lm6.5 million in expenditure.

Total general government debt at the end of last September was estimated at Lm1,407.6 million compared to Lm1,426.8 million at the end of September 2005. Malta Government Stocks (classified as long-term securities other than shares) accounted for Lm1,133.7 million, or 80.5 per cent of the total outstanding debt.