Central Government debt up by €250.4 million on last year

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Central Government debt up by €250.4 million on last yearAt the end of June, Central Government debt stood at €5,045.3 million, up by €250.4 million over the corresponding period last year. This was the result of higher long-term and short-term borrowing, which added €79.8 million and €173.2 million respectively, the National Statistics Office reported today.

The NSO also said that in the first half of 2013, the shortfall between recurrent revenue and total expenditure of Central Government amounted to €241.2 million, down from €284.3 million in the corresponding period last year.

An increase of €104.0 million in recurrent revenue outweighed the added expenditure of €60.9 million, resulting in a reduction of €43.2 million in the government deficit.

During January-June, recurrent revenue stood at €1,307.5 million, up by 8.6 per cent over last year. This was mainly due to higher proceeds from Income Tax (+€60.8 million), Grants (+€59.1 million), Social Security (+€14.2 million) and Value Added Tax (+€8.5 million).

These were partially offset by Miscellaneous Receipts (-€20.2 million), lower returns from the Central Bank of Malta (-€6.0 million), Customs and Excise Duties (-€6.0 million) and Dividends on Investments (-€4.1 million).

Compared to 2012, total expenditure amounted to €1,548.7 million, up by 4.1 per cent, as a result of more outlays on all expenditure components.

Recurrent expenditure increased by €36.6 million, mainly as a result of higher outlays on personal emoluments (€17.2 million) and contributions to government entities (€9.5 million). The Programmes and Initiatives category advanced by €13.6 million, mainly on account of a rise in social security bene? ts (+€15.1 million). Operational and maintenance expenditure declined by €3.7 million.

Expenditure on Government’s capital projects amounted to €178.8 million. The increase of €22.4 million over the corresponding period last year includes an equity injection of €40.0 million to the national air carrier, up from €20.0 million last year. Moreover, expenditure on road construction went up by €3.2 million. Conversely, a decline of €1.8 million was registered in the ICT core services agreement.

During the period under review, the interest component of the public debt servicing costs registered an increase of €1.9 million and was recorded at €111.2 million.

On the other hand, foreign borrowing went down by €12.0 million. As a result of consolidation, lower holdings by government funds in MGSs brought about an increase in debt of €4.0 million. The euro coins issued in the name of the Maltese Treasury went up by €5.2 million when compared to the coin stock as at the end of June 2012, and totalled €52.3 million.

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