Data from the Government Consolidated Fund indicate that the shortfall between recurrent revenue and total expenditure for the first ten months of the year compared to the same period last year declined by Lm2.1 million and amounted to Lm71.1 million. The increase in total expenditure was Lm14.9 million while the increase in respect of recurrent revenue was Lm17.0 million.

When compared to the same period in 2006, revenue from Income Tax rose by Lm18.9 million to Lm196.7 million. Revenue from Social Security Contributions and from Value Added Tax increased by Lm5.0 million and by Lm5.7 million respectively, while revenues from Customs and Excise duties yielded an additional Lm5.3 million. Concurrently, revenue from Grants declined by Lm28.2 million.

Recurrent expenditure during the first ten months of this year amounted to Lm652.9 million, an increase of Lm27.3 million over the same period last year. This increase was mainly brought about by increases of Lm10.9 million and Lm9.1 million respectively on Social Security Benefits and on outlays under the Ministry for Investment, Industry and Information Technology.

Interest payments on Government borrowing increased by Lm0.3 million and totalled Lm67.6 million.

Capital expenditure for the January to October period amounted to Lm81.7 million, a decline of Lm12.7 million when compared to the first ten months of 2006. Lower capital outlays by the Ministry of Finance (-Lm14.4 million) were in part offset by higher expenditures under the Ministry for Gozo (+Lm2.0 million), and under the Ministry of Health, the Elderly and Community Care (+Lm1.2 million).

Compared to October 2006, Central Government debt at the end of October this year increased by Lm67.9 million, amounting to Lm1,422.6 million. During the past 12 months, Treasury Bills and Government Stock increased by Lm29.9 million and by Lm48.8 million respectively, while foreign borrowing has been reduced by Lm10.2 million