Government Finance Data issued today by the National Statistics Office (NSO) shows a decline in the Consolidated Fund deficit of €68.9 million in the first eight months of 2015, in line with Government fiscal projections.

PRESS RELEASE ISSUED BY THE MINISTRY FOR FINANCE

Data for the first eight months of 2015 shows that recurrent revenue increased by 11.9 per cent or €235.6 million, on the back of strong increases in private income and consumption. Spurred by a buoyant labour market, revenue from income tax increased by €64.9 million in spite of the lower income tax rates, whilst revenue from social security contributions rose by €19.9 million. On the other hand, rising consumers’ confidence boosted revenue from VAT which increased by around €18.1 million, reflecting an increase of about €100 million in vatable products and services. Customs and excise duties also increased by €63.3 million.

Government expenditure increased by 7.6 per cent or €166.7 million, with the highest contributor to this increase being expenditure on programmes and initiatives which increased by around €83.0 million. This expenditure item reflects Government’s various initiatives which include the 2015 budget measures such as the extension of free childcare services and increasing resources in health. Moreover, capital expenditure reached over €271.4 million in the first eight months of this year reflecting the increase in investment in priority sectors particularly education and health. This increase was partly reflected in an increase in revenue from grants during the same period.

Minister for Finance Prof. Scicluna comments; “These figures complement other financial and economic indicators, such as the record growth in employment, that strengthen our belief that we are on the right path to attain our ambitious fiscal targets and hence assure public finance sustainability.”

– Friday, 25th September, 2015