During the period under review, the balance of recurrent revenue and total expenditure of Central Government amounted to a deficit of €328.0 million, an increase of €84.9 million.

According to data obtained from the Consolidated Fund of Government, recurrent revenue for the first ten months of the year exhibited a decline of €24.5 million, while total expenditure rose by €60.4 million, hence increasing the shortfall between recurrent revenue and total expenditure by €84.9 million to €328.0 million.

For the period January-October 2009, recurrent revenue was recorded at €1,763.4 million. The decline of 1.4 per cent, compared to the corresponding period in 2008, was attributed to lower Customs and Excise duties (-€62.2 million) and Value Added Tax (-€20.9 million). At the same time increases in revenue were recorded from Grants (+€24.6 million), Social Security (+€20.1 million), Licenses, taxes and fines (+€17.7 million) and Income tax (+€4.0 million).

On the other hand, compared to January-October 2008, total expenditure registered an increase of €60.4 million as a result of higher spending on recurrent expenditure, interest payments, and capital.

Recurrent expenditure went up by €46.6 million, totalling €1,729.3 million. The largest increase was recorded in programmes and initiatives (€22.3 million) as a result of higher expenditure on social security benefits (+€32.0 million), the shipyards’ voluntary retirement scheme (+€20.0 million), medicines and surgical materials (+€6.2 million), third country nationals (+€5.9 million), EU own resources (+€4.3 million) and solid waste strategy (+€3.8 million) which were partly offset by a fall of €52.0 million in energy support measures. Moreover, personal emoluments added €16.9 million.

The interest component of the public debt servicing costs for the period under review rose by €3.1 million and amounted to €170.2 million.

In addition, Government’s Capital Expenditure for the first ten months this year was recorded at €192.0 million from €181.3 million last year, up by 5.9 per cent.

The Central Government debt outstanding at the end of October 2009 totalled €3,899.1 million, an increase of €355.7 million compared to October last year.

Short-term and long-term borrowing rose by €201.2 million and €161.7 million respectively, while foreign borrowing declined by €14.0 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 €36.8 million, €6.8 million higher compared to the euro coin stock as at end October last year