Government’s Consolidated Fund registers €71.3 million deficit

In the first five months of the 2016, Government’s Consolidated Fund registered a deficit of €71.3 million.

Compared to January-May 2015, recurrent revenue registered an increase of €62.8 million whereas total expenditure went up by €15.3 million. This resulted in a positive change in the Government’s Consolidated Fund by €47.5 million.

In total, recurrent revenue reached €1,402.7 million in this period, when compared to €1,339.9 million last year. The higher income tax and added social security contributed primarily to the 4.7% increase, due to a respective increase of €44.8 million and €29.7 million.

Moreover, increases were also recorded for Licences, Taxes and Fines (€19.9 million), Value Added Tax (€18.5 million) and Customs and Excise Duties (€15.6 million), among others.

On the other hand, major decreases were recorded in proceeds from Grants (€84 million).

Compared to the period between January and May of last year, total expenditure moved up from €1,458.7 million to €1,474 million, mainly due to added outlays on recurrent expenditure which were partially outweighed by lower spending on capital expenditure and interest payments.

Recurrent expenditure increased from €1,183.9 million last year to €1,269.2 million this year. Programmes and Initiatives were the major contributors to this increase with a rise of €32.9 million. The main developments in this category involved higher social security benefits (€17.4 million), a rise in the social security state contribution, added outlays due to CHOGM (€4.5 million) and the provision of spare capacity electricity (€3.5 million). Increases were also registered in Contributions to Government Entities (€25.1 million), Personal Emoluments (€15.1 million) and Operational and Maintenance Expenses (€12.2 million).

Conversely, lower EU Own Resources were recorded (€11 million).

The interest component of the public debt servicing costs stood at €95.2 million, down from €96.1 million last year.

Government’s capital expenditure was recorded at €109.6 million, a decline of €69.1 million. The decline was mainly the result of lower spending on EU funded projects primarily in the environment and agriculture sectors. Other declines were recorded in the external borders fund and the acquisition of property for public purposes.

At the end of May 2016, Central Government Debt stood at €5,592.4 million, an increase of €247.2 million over the corresponding period last year. This was the result of higher Malta Government Stocks and Treasury Bills, which added €167.6 million and €134.0 million respectively.

On the other hand, Domestic Loans with Commercial Banks and Foreign Loans went down by €56.4 million and €10.5 million respectively. Lower holdings by government funds in Malta Government Stocks resulted in an increase in debt of €5.5 million. The Euro coins issued in the name of the Treasury went up by €7.1 million when compared to the coin stock as at the end of May 2015, and totalled €69 million.