Latest government finance data published by the National Statistics Office (NSO) shows a reduction of almost €100 million in the consolidated fund deficit in the period January to October of this year. As a result the deficit for the ten-month period was halved.

PRESS RELEASE BY THE MINISTRY FOR FINANCE

The significant reduction in the deficit was supported by an increase in recurrent revenue of €141.1 million or 5.1 per cent while total expenditure increased by €41.4 million or 1.4 per cent.

The increase in recurrent revenue was mainly backed by higher income tax revenue (€110.8 million) and social security (€52.0 million), with other increases registered in revenues from licences, taxes and fines (€27.9 million), VAT (€13.9 million) and customs and excise duties (€13.6 million). The increase in recurrent expenditure mainly reflected the increase in expenditure on programs and initiatives (€66.8 million). Other expenditure increases were recorded in contributions to Government entities (€37.2 million), personal emoluments (€32.7 million) and operational and maintenance expenses (€23.8 million).

The Ministry notes that the increase in recurrent revenue was significant despite a €93.4 million decline in 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.

Minister for Finance Edward Scicluna: “The decline in the consolidated fund deficit shows that we are a step closer to reaching the ambitious deficit target set for this year”.

Friday 25th November 2016