Gov­ern­ment’s Con­sol­i­dated Fund reg­is­ters €79.1m deficit be­tween Jan­uary-Au­gust

Malta Independent - - NEWS -

In Jan­uary-Au­gust 2016, Gov­ern­ment’s Con­sol­i­dated Fund reg­is­tered a deficit of €79.1 mil­lion, the NSO said yes­ter­day.

Com­pared to the same pe­riod last year, re­cur­rent rev­enue reg­is­tered an in­crease of €100.2 mil­lion whereas to­tal ex­pen­di­ture went up by €38.3 mil­lion. This re­sulted in a pos­i­tive change in the Gov­ern­ment’s Con­sol­i­dated Fund by €61.9 mil­lion.

In Jan­uary-Au­gust 2016, re­cur­rent rev­enue was recorded at €2,322.6 mil­lion, up from €2,222.4 mil­lion last year. The com­par­a­tive in­crease of 4.5 per cent was pri­mar­ily the re­sult of higher In­come Tax and So­cial Se­cu­rity which in­creased by €77.2 mil­lion and €48.7 mil­lion re­spec­tively. More­over, in­creases were also recorded for Value Added Tax (€34.0 mil­lion), Li­cences, Taxes and Fines (€30.2 mil­lion) and Cus­toms and Ex­cise Du­ties (€10.4 mil­lion), among oth­ers. Con­versely, ma­jor de­creases were recorded in pro­ceeds from Grants (€100.4 mil­lion).

Com­pared to Jan­uary-Au­gust last year, to­tal ex­pen­di­ture stood at €2,401.8 mil­lion up from €2,363.4 mil­lion, mainly as re­sult of added out­lays on re­cur­rent ex­pen­di­ture which out­weighed lower spending on cap­i­tal ex­pen­di­ture and in­ter­est pay­ments.

Re­cur­rent ex­pen­di­ture stood at €2,063.7 mil­lion from €1,939.3 mil­lion last year. The ma­jor con­trib­u­tor to this in­crease was Pro­grammes and Ini­tia­tives with a rise of €44.9 mil­lion.

The main de­vel­op­ments in this cat­e­gory in­volved higher so­cial se­cu­rity ben­e­fits (€22.4 mil­lion), a rise in the so­cial se­cu­rity state con­tri­bu­tion (of €14.0 mil­lion which also fea­tures as rev­enue), added out­lays due to EU Pres­i­dency 2017 (€7.9 mil­lion), CHOGM (€3.9 mil­lion) and the pro­vi­sion of spare ca­pac­ity elec­tric­ity (€3.5 mil­lion).

On the other hand, lower EU Own Re­sources were recorded (€7.2 mil­lion). In­creases were also reg­is­tered in Con­tri­bu­tions to Gov­ern­ment En­ti­ties (€41.6 mil­lion), Per­sonal Emol­u­ments (€25.9 mil­lion) and Op­er­a­tional and Main­te­nance Ex­penses (€11.9 mil­lion).

The in­ter­est com­po­nent of the pub­lic debt ser­vic­ing costs stood at €149.8 mil­lion, down from €152.7 mil­lion last year.

Gov­ern­ment’s cap­i­tal ex­pen­di­ture wit­nessed a de­cline of €83.1 mil­lion, and was recorded at €188.3 mil­lion. This was mainly the re­sult of lower spending on EU funded projects mainly those re­lated to sewage and agri­cul­ture. Other de­clines were recorded in the ex­ter­nal bor­ders fund and the ac­qui­si­tion of prop­erty for pub­lic pur­poses.

At the end of Au­gust 2016, Cen­tral Gov­ern­ment Debt stood at €5,554.6 mil­lion, up by €158.1 mil­lion over the cor­re­spond­ing pe­riod last year. This was the re­sult of higher Malta Gov­ern­ment Stocks and Trea­sury Bills, which added €147.0 mil­lion and €52.5 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 €20.1 mil­lion.

The Euro coins is­sued in the name of the Trea­sury went up by €5.4 mil­lion when com­pared to the coin stock as at the end of Au­gust 2015, and to­talled €70.4 mil­lion.

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