Recurrent revenue up, total expenditure down

Recurrent revenue during the first four months of this year totalled Lm228.2 million, and made up 27.1 per cent of this year's budget forecast, the National Statistics Office said yesterday.

Compared to the same period last year, recurrent revenue increased by Lm17.1 million, or 8.1 per cent. Concurrently, total expenditure amounted to Lm288 million, a decrease of Lm3 million, or one per cent.

The shortfall (structural deficit) between recurrent revenue and total expenditure (excluding contributions to the sinking fund in respect of local and foreign loans and direct repayment of loans) amounted to Lm59.8 million, compared to a shortfall of Lm79.5 million reported for January-April 2003.

During the period under review this year no contributions to the sinking fund and no direct loan repayments were effected, however during the same period last year Lm0.5 million were expended by way of direct loan repayment while proceeds from new loans this year amounted to Lm24.1 million.

The comparative increase of Lm17.1 million in recurrent revenue was mainly brought about by higher revenue under Income Tax (+Lm5.7 million) and VAT (+Lm11.2 million). A net increase of Lm8.5 million was also registered under Licences, Taxes and Fines, mostly by way of signing-on fees received upon privatising the operations of the lotteries earlier this year.

These increases were partially offset by revenue reductions recorded under Social Security Contributions (-Lm0.5 million), Central Bank of Malta (-Lm6.6 million) and Miscellaneous Receipts (-Lm1.7 million).

When compared to the first four months of 2003, recurrent expenditure (excluding Public Debt Servicing) increased by Lm6.9 million or three per cent, and amounted to Lm233.2 million. Recurrent expenditure this year makes up 31.5 per cent of this year's budgetary estimates, while the recurrent expenditure for the same period last year made up 33.4 per cent of the year's final outturn.

Personal emoluments for the January-April period this year amounted to Lm61.7 million, and made up 30.9 per cent of the budget forecast (Lm199.6 million), while last year's outlay for the same period was of Lm65.0 million and made up 33.1 per cent of the final outturn. These figures represent a relative decrease this year of Lm3.3 million.

This decrease is in part due to the personal emoluments of the drainage directorate which this year is appearing under a different expenditure category. At the same time this year's outlay includes increases resulting from the annual increments and the latest civil service collective agreement.

Expenditure under the operational and maintenance expenditure category amounted to Lm19.8 million during the first four months of this year. This total represents a decrease of Lm0.4 million or two per cent from Lm20.2 million expended last year.

At the same time expenditure registered under the special expenditure category amounted to Lm0.2 million, which is practically in line with the amount expended last year.