Consolidated fund deficit down by €33.8 million in first seven months of 2016

The consolidated fund deficit decreased by €33.8 million between January and July 2016 when compared with the same period last year as Government expenditure increased by just €1.3million or 0.1 per cent while recurrent revenue increased by €35.1 million or 1.9 per cent.

PRESS RELEASE BY THE MINISTRY FOR FINANCE

Recurrent revenue grew as a result of robust economic growth, with revenue from taxes increasing by €148.4million over the same period when compared to 2015.

The remarkable increase in net revenue was achieved in spite of the significant fall in EU grants reflecting the closure of the European Union financing period 2007-2013 at the end of last year. Reductions in the EU grant component is being balanced by lower EU funded capital expenditure. In fact, capital expenditure for the first seven months was €90.6 million lower than the peak of the previous year.

Minister for Finance, Prof. Edward Scicluna remarked that “It is encouraging to note that the first half of the year the deficit is being held in check. We will now have to ensure that this positive financial performance is continued to be kept throughout the whole year.”