Increased shortfall in government finance

The shortfall between the government's recurrent revenue and total expenditure in January amounted to €136.5 million, an increase of €73.7 million over the same month last year.

The National Statistics Office said that recurrent revenue decreased by €17.1 million, while total expenditure increased by €56.6 million.

In January, the Consolidated Fund recorded decreases in income tax (-€11.0 million), fees of office (-€5.8 million), social security contributions (-€2.9 million) and grants (-€2.6 million).

At the same time, revenues from value added tax and rents increased by €3.9 million and €2.1 million, respectively.

Recurrent expenditure amounted to €227.4 million, an increase of €45.5 million compared to the same month last year.

This increase was mainly brought about by increases in social security benefits (+€14.5 million), the shipyards’ early retirement schemes (+€17.5 million) and expenditure on medicines and surgical materials (+€7.8 million).

Other increases were recorded under the personal emoluments and operational and maintenance expenses categories, which increased by €2.2 million and €4 million respectively.

The interest component of the public debt servicing costs for January increased by €3.9 million and amounted to €17.8 million. Capital expenditure amounted to €24.4 million, an increase of €7.2 million when compared to the expenditure of €17.2 million for January 2008.

Main comparative increases were recorded for film industry incentives (+€4.9 million) and WasteServ Malta (+€3 million).

The central government debt outstanding at the end of January amounted to €3,581.9 million, an increase of €322.8 million compared to January last year. Long-term and short-term borrowing increased by €201.1 million and €120.3 million respectively, while foreign borrowing declined by €7 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 €32.3 million, an increase of €9 million over the same period last year.