According to the latest government’s finance data, government revenue continued to surge up to the months of April, outpacing expenditure and narrowing the Consolidated Fund deficit to €65.5 million by the end of the first four months of the year. This is significantly less than the deficit recorded at the end of April last year at €261 million.
According to the latest figures published by the National Statistics Office, recurrent revenue between January and April reached €2.86 billion, an increase of €635.7 million over the same period last year. Total expenditure stood at €2.92 billion, increasing by €439.8 million.
This means that the government’s fiscal position improved by €195.9 million when compared to the same period last year, when the deficit stood at €261.4 million. By the end of March, the deficit stood at €84.3 million. By the end of April, it had narrowed to €65.5 million, meaning that the government effectively registered a monthly surplus of around €18.8 million in April.
The largest increase in revenue came from income tax, which rose by €347.5 million in the first four months of the year. VAT revenue also increased by €102 million, while grants rose by €100.4 million. The figures confirm that government income is being sustained by strong tax collection and continued economic activity.
Expenditure, however, is still increasing at a fast pace. Recurrent expenditure rose by €359.4 million, which went up by €191.8 million. The main increases came from social security benefits, medicines and surgical materials, and energy support measures.
Personal emoluments also increased by €59.9 million, while contributions to government entities rose by €65.9 million. Operational and maintenance expenses increased by €41.7 million.
The interest component on public debt also continued to rise, reaching €105 million by the end of April, an increase of €10.7 million over the same period last year.
Capital spending amounted to €237.6 million, up by €69.7 million. The main increases were recorded in road construction and improvements, the development of the second electricity interconnector, and property, plant and equipment.
As has been repeatedly noted, the improvement in the headline deficit continues to be sustained by a sharp increase in government debt. By the end of April, central government debt reached €11.97 billion, an increase of €1.14 billion over the same month last year.
The increase was sourced from Government Stocks, which rose by €942.4 million, and Treasury Bills, which increased by €249.9 million.
The figures show that government finances are improving on paper as revenue rises faster than expenditure. But the improvement is still taking place against a backdrop of rising recurrent spending, higher debt servicing costs, and a public debt level that is now approaching €12 billion.
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