Deficit rises to €339.5 million at end-October

Recurrent revenue registered an increase of €121.0 million which was entirely offset by a rise in total expenditure of €132.5 million.

During the period under review, recurrent revenue stood at €1,884.5 million. The comparative increase of 6.9 per cent was mainly the result of higher returns from Customs and Excise Duties (+€51.0 million), Income tax (+€49.7 million), and Social Security (+€19.3 million). Conversely, declines of €11.6 million were observed in Licenses, Taxes and Fines.

Between January and October 2010, total expenditure reached €2,224.0 million, up by 6.3 per cent, as a result of more outlays on recurrent and capital expenditure.

The main contributor to the increase in recurrent expenditure was Social Security Benefits which went up by €34.4 million. Moreover, the reclassification of the outlay on the Malta Tourism Authority which amounted to €21.1 million, and the budgetary compensation in respect of Energy Support Measures of €13.5 million, added to recurrent expenditure.

Other increases were registered in Personal Emoluments (+€26.7 million) and in the allocation to local councils (+€6.5 million). On the other hand, major declines were recorded in the shipyards' voluntary retirement schemes and in medicines and surgical materials, of €17.7 million and €9.7 million respectively.

Capital expenditure rose by €54.3 million. This was mainly due to increases relating to the Malta South Sewage Treatment Infrastructure of €22.5 million and an amount of €10.0 million in connection with the introduction of the Jeremie Financial Engineering Fund. Furthermore this year, an additional €24.8 million was transferred to the Treasury Clearance Fund. An increase of €16.0 million was recorded in the structural funds related to education.

These were in part outweighed by the reclassification of the Malta Tourism Authority from capital to recurrent expenditure. The interest component of the public debt servicing costs for the period under review declined to €169.8 million.

At the end of October, Central Government debt stood at €4,190.3 million, a rise of €291.2 million, or 7.5 per cent, over the corresponding period last year. This increase in government debt was the result of higher long-term borrowing which added €423.4
million.

On the other hand, short-term securities and foreign borrowing declined by €123.8 million and €12.1 million respectively. The euro coins issued in the name of the Maltese Treasury rose by €3.7 million when compared to the euro coin stock as at the end of October 2009, and totalled €40.5 million.