3 9 January 2001
Consumption taxes up 22 per cent
Total Expenditure amounted to Lm630.3 million (or 87.8 per cent of the approved Estimates).
Public Debt Servicing costs for the period under review went up by Lm6.0 million or 10.9 per cent
Although proceeds from the sale of shares this year were Lm25.5 million less when compared with 1999, Ordinary Revenue during the first eleven months of this year registered a year-on year increase of Lm16.6 million, or 3.1 per cent. Proceeds from income tax increased by Lml2.4 million, or 10.8 per cent; and Social Security contributions registered an increase of Lml4.3 million, or 11.6 per cent. Consumption taxes have also increased their yield by Lml7.4 million or 22.2 per cent.
On the other hand, proceeds from Central Bank of Malta 1999 profits have contributed Lm3.1 million less than what had been passed on to revenue last year in respect of the previous year.
The shortfall between Ordinary Revenue (including sale of shares which yielded Lm37.5 million in 1999 and Lml2.0 million this year) and Total Expenditure during the first eleven months of this year amounted to Lm80.4 million, an increase of Lml0.9 million or 15.7 per cent on a comparable shortfall of Lm69.5 million reported during the January to November period of 1999.
During the January to November period last year, Ordinary Revenue (including the sale of shares) amounted to Lm533.4 million (or 84.9 per cent of the total for the year), and the Total Expenditure stood at Lm602.8 million (or 87.3 per cent of the annual total). During the same period this year, Ordinary Revenue (including the sale of shares) yielded Lm549.9 million or 82.4 per cent of the approved Budget Estimates; while Total Expenditure amounted to Lm630.3 million (or 87.8 per cent of the approved Estimates).
As far as this year's expenditures are concerned, both recurrent expenditure and total expenditure are, by and large, on the same level as those for last year when comparing this year's data with the budgetary estimates and last year's data with the actual final outturn.
This year's Recurrent Expenditure to date exceeds the corresponding 1999 figure by Lm27.4 million, and accounts for 89.0 per cent of this year's budgeted total of Lm553.2 million. The Recurrent Expenditure during the first eleven months of last year amounted to Lm464.9 million, and made up 89.4 per cent of the actual final outturn of Lm520.0 million.
During the period under review, Lm6.0 million (Personal Emoluments) have been additionally incurred due to the cost of living adjustment and normal incremental steps in wages and salaries. An additional Lm5.0 million was expended under Operational and Maintenance Expenses by way of expenditure across several departments on general utilities, as well as Health Division payments in respect of drugs and surgical materials. At the same time, an increase of Lml6.0 million was also reported under Programmes and Initiatives. This Increase was essentially made up of additional Social Security benefits (+Lm8.2 million), the once only compensation payment granted by Govemment (Lm3.9 million), and the Social Security state grant (+Lm4.0 million), which is ploughed back to Revenue.
The Contribution to Government Entitles Category has this year retained the same level of expenditure as last year (Lm2l.0 million).
Public Debt Servicing costs for the period under review went up by Lm6.0 million or 10.9 per cent, from Lm55.3 million last year to Lm6l .3 million during the period under review. New loans borrowed last year, and the resort to Treasury Bills this year in lieu of privatisation funds were responsible for this increase.
Capital Expenditure during the first eleven months of this year declined by almost Lm6.0 million when compared to the same year ago figures. This was mainly the result of the heavy expenditure incurred last year and which is not repeatable during the current year, on the stratigraphic well in Gozo (Lm6.3 million), as well as on the cost of terminal benefits in connection with Kalaxlokk Company employees (Lm4.5 million). On the other hand, this year's expenditure on the New Hospital project is higher by Lm4.6 million.
Provisional statistics supplied by the Central Bank of Malta show that Government Debt outstanding at the end of November 2000 amounted to Lm913.2 million; an increase of Lm73.6 million or 5.8 per Cent on the Lm839.6 million outstanding at the end of November last year. Treasury Bills and Malta Government Stocks accounted for Lm159.3 million or 17.5 per cent, and Lm7l 2.7 million or 78.0 per cent respectively. The remaining share of Lm4l .2 million or 4.5 per cent is made up of foreign borrowing. Compared to one month earlier, Government debt increased by Lml6.7 million or 1.9 per cent.