Recurrent revenue rose by €62.8 million while total expenditure went up by €15.3 million in the first five months of the year when compared to last year, official statistics show.
The increases resulted in a positive change in the Government’s Consolidated Fund by €47.5 million.
In the first five months of 2016, recurrent revenue was recorded at €1,402.7 million, up from €1,339.9 million last year. The increase of 4.7 per cent was primarily the result of higher income tax and added social security which increased by €44.8 million and €29.7 million respectively.
Increases were also recorded for licences, taxes and fines (€19.9 million), VAT (€18.5 million) and customs and excise duties (€15.6 million), among others. Conversely, major decreases were recorded in proceeds from grants (€84.0 million).
Compared to January-May last year, total expenditure stood at €1,474.0 million up from €1,458.7 million, mainly as a result of added outlays on recurrent expenditure partially outweighed by lower spending on capital expenditure and interest payments.
Recurrent expenditure stood at €1,269.2 million from €1,183.9 million last year. The major contributors to this increase were Programmes and Initiatives with a rise of €32.9 million.
The main developments in this category involved higher social security benefits (€17.4 million), a rise in the social security state contribution, added outlays due to CHOGM (€4.5 million) and the provision of spare capacity electricity (€3.5 million). On the other hand, lower EU Own Resources were recorded (€11.0 million). Increases were also registered in Contributions to Government Entities (€25.1 million), Personal Emoluments (€15.1 million) and Operational and Maintenance Expenses (€12.2 million).
The interest component of the public debt servicing costs stood at €95.2 million, down from €96.1 million last year.
Government’s capital expenditure witnessed a decline of €69.1 million and was recorded at €109.6 million. This was mainly the result of lower spending on EU funded projects primarily in the environment and agriculture sectors. Other declines were recorded in the external borders fund and the acquisition of property for public purposes.
Table 3 illustrates the Government Expenditure by COFOG category. The Classifi cation of the Functions of Government (COFOG) classifies government expenditure data by the purpose for which the funds are used.
At the end of May 2016, Central Government Debt stood at €5,592.4 million, up by €247.2 million over the corresponding period last year. This was the result of higher Malta Government Stocks and Treasury Bills, which added €167.6 million and €134.0 million respectively. On the other hand, Domestic Loans with Commercial Banks and Foreign Loans went down by €56.4 million and €10.5 million respectively.
Lower holdings by government funds in Malta Government Stocks resulted in an increase in debt of €5.5 million. The Euro coins issued in the name of the Treasury went up by €7.1 million when compared to the coin stock as at the end of May 2015, and totalled €69.0 million.