According to data obtained from the Consolidated Fund of Government for 2008, the shortfall between recurrent revenue and total expenditure increased by €124.0 million when compared to 2007, and amounted to €233.1 million. An increase of €201.7 million in total expenditure was eclipsed by an increase of €77.7 million in recurrent revenue.

During 2008, the Consolidated Fund recorded increases in revenue of €72.5 million and of €33.6 million from Taxes on Income and from Value Added Tax respectively. Social Security Contributions added €29.9 million during the period under review. At the same time, revenue from Grants declined by €26.1 million while revenue from licences, taxes and fines declined by €12.4 million (mainly on account of lower revenue on duty on documents).

Recurrent expenditure amounted to €2,124.1 million, an increase of €227.5 million compared to the previous twelve months. During the year under review the main increases were reported on social security benefits (+€52.5 million, mainly on account of an increase of €31.8 million to the retirement pensions, and €11.1 million on children’s allowance), the shipyards voluntary retirement scheme (+€40.9 million) and energy support measures (+€35.7 million).

During 2008 the interest component of the public debt servicing costs amounted to €189.0 million, a comparative increase of €10.0 million over the previous year. Interest payments on long-term and short-term borrowing increased by €6.9 million and €3.3 million respectively, while interest on foreign borrowing declined by €0.2 million.

Total expenditure under the Capital Programme for 2008 declined by €35.8 million and amounted to €222.1 million. Capital expenditure under the Ministry of Health, the Elderly and Community Care increased by €14.2 million, while capital expenditure by the Ministry for Rural Affairs and the Environment increased by €11.4 million. On the other hand, lower expenditure in respect of construction works and equipment under the Mater Dei Hospital project brought about a decline of €53.7 million under the Ministry of Finance.

Loans taken up by Government during 2008 amounted to €285.7 million, of which €93.2 million were on account of matured stock.

The Central Government debt outstanding at the end of the year amounted to €3,525.2, an increase of €227.0 million compared to the gross Central Government debt outstanding at the end of December 2007. Long-term and short-term borrowing increased by €201.1 million and €10.9 million respectively, while foreign borrowing decreased by €7.2 million. At the end of December, 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 €31.2 million.