Government consolidated fund registers €2.6m deficit in first five months

In January-May 2017, Government's Consolidated Fund registered a deficit of €2.6 million, the NSO said today.

Compared to the same period last year, recurrent revenue registered an increase of €165.4 million whereas total expenditure went up by €96.7 million. This resulted in a positive change in the Government's Consolidated Fund by €68.7 million.

In January-May 2017, recurrent revenue was recorded at €1,568.1 million, up from €1,402.7 million last year. The comparative increase of 11.8 per cent was primarily the result of higher Grants and Income Tax which increased by €44.8 million and €33.7 million respectively. Moreover, increases were also recorded for Fees of Office (€28.2 million), Value Added Tax (€24.1 million), Social Security

(€21.5 million), Licences, Taxes and Fines (€7.9 million), Customs and Excise Duties (€7.5 million), Reimbursements (€4.0 million) and Rents (€3.4 million) among others. Conversely, decreases were recorded in Miscellaneous Receipts (€9.8 million).

Compared to January-May last year, total expenditure stood at €1,570.7 million up from €1,474.0 million due to added outlays on recurrent expenditure and capital expenditure which outweighed lower spending on interest payments.

Recurrent expenditure stood at €1,353.7 million from €1,269.2 million last year. The main contributors to this increase were Programmes and Initiatives and Personal Emoluments with a rise of €62.3 million and €14.2 million respectively. The main developments in the Programmes and Initiatives category involved added outlays due to Health Concession Agreements (€13.7 million), EU Presidency 2017 (€12.7 million), higher EU Own Resources (€9.2 million), social security benefits (€8.7 million), state contribution (€6.1 million which also features as revenue), Jobsplus programmes (€4.4 million), heads of government event (€3.5 million) and child care for all (€1.8 million). On the other hand, lower outlays for Medicines and Surgical Materials were recorded (€7.3 million). Contributions to Government Entities increased by €8.9 million. Decreases were registered in Operational and Maintenance Expenses (€0.8 million).

The interest component of the public debt servicing costs stood at €89.6 million, down from €95.2 million last year.

Government's capital expenditure witnessed an increase of €17.8 million, and was recorded at €127.4 million. This was mainly the result of ICT Core Services Agreement (€3.9 million), higher spending on road construction improvements (€3.7 million), investment incentives (€3.2 million) and Tomorrow Schools (€1.7 million).

At the end of May 2017, Central Government Debt stood at €5,595.6 million, up by €3.2 million over the corresponding month last year. This was the result of higher Malta Government Stocks and Euro coins issued in the name of the Treasury, which added €153.9 million and €4.9 million respectively.

On the other hand, Treasury Bills and Foreign Loans went down by €129.0 million and €10.4 million respectively. Higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €16.2 million.

from The Malta Independent http://ift.tt/2trsA4e
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