Lower deficit recorded

The government’s shortfall between recurrent revenue and expenditure improved from €199.5 million last year to €154.8 million in the first two months of this year.

The National Statistics Office said that according to data obtained from the government’s consolidated fund there was an increase in recurrent revenue of €33.4 million and a drop in total expenditure of €11.4 million in the first two months of this year, lowering the government deficit to €154.8 million.

During the period under review, recurrent revenue was recorded at €291.9 million.

The comparative increase of 12.9 per cent was triggered by higher returns, among others, from income tax (+€19.5 million) and from value added tax (+€9.2 million).

An increase of €10.7 million was also registered in social security, including €9.8 million related to social security payments, also reflected as an increase in recurrent expenditure.

On the other hand, declines in recurrent revenue were registered in licenses, taxes and fines (-€2.5 million) and customs and excise duties (-€1.8 million).

Compared to 2009, total expenditure in the period under review exhibited a decline of €11.4 million, as a result of lower capital and recurrent expenditure.

Notwithstanding an increase in expenditure on social security benefits (+€12.5 million), state contribution (+€9.8 million) and to the Malta Tourism Authority (+€7.4 million), recurrent expenditure in 2010 went down by €2.3 million, totalling €380.4 million.

The increases were outweighed by lower outlays on the shipyards' voluntary retirement schemes (-€17.2 million), street lighting (-€3.9 million) and medicines and surgical materials (-€13.6 million).

A major part of the increase in recurrent expenditure also reflected as a fall in capital expenditure, due to a reclassification of the contribution given to the Malta Tourism Authority from capital to recurrent expenditure.

As a result, government's capital expenditure for the period under review was recorded at €29 million, from €38.2 million last year, down by 24.1 per cent.

The interest component of the public debt servicing costs of €37.3 million for the period analysed remained at the same level recorded last year.

At the end of February, the government’s debt outstanding recorded an increase of €303.5 million to €3,938.9 million, compared to the corresponding month last year.

Increases were observed in short-term and long-term borrowing, which rose by €13.7 million and €299.7 million respectively.

Conversely, foreign borrowing declined by €13.3 million.

The euro coins issued in the name of the Maltese Treasury totalled €36.6 million, up by €4.2 million when compared to the euro coin stock as at the end of February last year.