MaltaMedia.com

The shortfall between recurrent revenue and total expenditure of Central Government for the first half of the year amounted to €337.5 million, an increase of €81.1 million or 31.6 per cent over the comparative period last year, according to new data published by the NSO on Friday.

According to data obtained from the Consolidated Fund of Government, recurrent revenue exhibited a decline of €21.2 million whereas an increase in total expenditure of €60.0 million was recorded.

During January-June 2009, recurrent revenue amounted to €969.2 million. This decline was brought about by lower Customs and Excise duties (-€34.2 million) and Value Added Tax (-€15.6 million) which outweighed the higher returns from Income Tax (+€20.9 million) and Social Security (+€11.3 million).

The increase in total expenditure, from €1,246.7 million in the first half of 2008 to €1,306.7 million in the comparable period of 2009, was mainly caused by increases in the components of recurrent expenditure.

Recurrent expenditure amounted to €1,089.9 million, an increase of €56.4 million or 5.5 per cent over the relative period last year, mainly due to higher expenditure on social security benefits (+€22.2 million), the shipyards’ voluntary retirement schemes (+€19.1 million) and medicines and surgical materials (+€9.3 million).

Other increases were recorded under the personal emoluments and operational and maintenance expenditure categories, which increased by €8.9 million and €7.1 million respectively. The interest component of the public debt servicing costs for the period under review increased by €3.0 million and amounted to €96.7 million.

Government’s Capital Expenditure for the first half of the year amounted to €120.1 million, a marginal increase from the €119.5 million recorded last year. The Central Government debt outstanding at the end of June amounted to €3,820.4 million, an increase of €351.6 million compared to June last year.

Short-term and long-term borrowing advanced by €224.5 million and €132.3 million respectively, while foreign borrowing declined by €13.8 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 €34.9 million, an increase of €8.2 million over the euro coin stock as at end June last year.