€4.3 million surplus in government finances registered in first ten months

A surplus of €4.3 million in government finances was registered in the period January to October, the National Statistics Office said yesterday.

Compared to the same period last year, recurrent revenue registered an increase of €374.9 million whereas total expenditure went up by €265.8 million. This resulted in a positive change in the Government’s Consolidated Fund by €109.2 million.

In January-October 2017, recurrent revenue was recorded at €3,282.1 million, up from €2,907.2 million last year. The comparative increase of 12.9 per cent was primarily the result of higher Value Added Tax and Income Tax which both increased by €100.6 million.

Moreover, increases were also recorded for Social Security (€56.8 million), Fees of Office (€32.5 million), Customs and Excise Duties (€29.8 million), Grants (€21.6 million), Reimbursements (€19.8million), Licences, Taxes and Fines (€17.8million) and Dividends on Investment (€6.7 million). Conversely, decreases were mainly recorded in Miscellaneous Receipts (€8.5 million) and Rents (€2.7 million).

Compared to January-October last year, total expenditure stood at €3,277.8 million up from €3,012.0 million due to added outlays on recurrent expenditure and capital expenditure which outweighed lower spending on interest payments.

Recurrent expenditure stood at €2,859.1 million from €2,594.5 million last year. The main contributors to this increase were Programmes and Initiatives and Personal Emoluments with a rise of €200.7 million and €30.5 million respectively. The main developments in the Programmes and Initiatives category involved added outlays due to Health Concession Agreements (€27.8million), social security benefits (€27.3 million), higher EU Own Resources (€21.4 million), state contribution (€17.8 million which also features as revenue), EU Presidency 2017 (€15.4 million), Jobsplus Programmes (€10.8 million), Contingency Reserve (€9.8 million), Medicines and Surgical materials (€9.2 million), Treasury Pensions (€6.0 million), Electoral Commission activities (€5.7 million), child care for all (€3.6 million), public social partnership (€2.7 million), allocation to local councils (€2.1 million), solid waste management (€2.0 million), church schools (€2.0 million) and public service obligations (€1.9 million).

Contributions to Government Entities and Operational and Maintenance Expenses increased by €24.8 million and €8.5 million respectively.

The interest component of the public debt servicing costs stood at €181.7 million, down from €187.0 million last year.

Government’s capital expenditure witnessed an increase of €6.6 million, and was recorded at €237.0 million. This was mainly the result of higher spending on investment incentives (€10.1 million), tomorrow schools (€6.0 million) and construction works and equipment (€3.8 million). On the other hand lower outlays related to acquisition of property for public services (€7.7 million) and film industry incentives (€6.0 million) were recorded.

At the end of October 2017, Central Government Debt stood at €5,605.9 million, down by €73.9 million over the corresponding month last year.

This was the result of lower Treasury Bills and Malta Government Stocks which decreased by €116.4 million and €28.5 million respectively.

Moreover Foreign Loans decreased by €10.4 million. On the other hand, the new 62+ Malta Government Savings Bond added €99.6 million and Euro coins issued in the name of the Treasury increased by €5.9 million.

Higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €24.3 million.