Government Finance Data issued today by the National Statistics Office (NSO) show that Government revenue and expenditure for 2015 are in line with 2016 Budget estimates. This means that the Government is on track in reaching the 1.6 per cent deficit target for 2015.
On the revenue side, recurrent revenue increased by €247.6 million in 2015 when compared to the previous year and was almost €5 million higher than projected in the 2016 Budget. The highest increases were recorded in the tax revenue components including revenue from income tax which increased by €116.5 million, VAT which increased by €60.3 million and social security contributions which rose by €40.4 million. Revenue from licences, taxes and fines also recorded a significant increase of €36.8 million. Other notable increases were registered in revenues from dividends on investments and miscellaneous receipts.
PRESS RELEASE BY THE MINISTRY FOR FINANCE
Recurrent expenditure increased by €199.8 million which is also within the 2016 Budget estimates. Indeed, the Budget for 2016 estimated that recurrent expenditure for 2015 would be equal to €3,054.0 million while actual recurrent expenditure for last year was equal to €3,056.8. The main contributor to the increase in recurrent expenditure was expenditure on programs and initiatives which increased by €107.6 million.
Capital expenditure, reflecting the various investment projects undertaken by Government in the previous year, continued to increase in 2015 and rose to €581.5 million. This marked a €146.1 million increase in investment spending over the previous year.
When accounting for the additional expenditure on capital, the majority of which will be financed through EU funds and recorded in the coming months under the Grants revenue component, the consolidated deficit is in line with Government’s Budget targets for 2015.
Minister for Finance Prof. Edward Scicluna remarks: “This positive result shows that this Government will succeed in reaching the deficit target for the third consecutive year auguring well for debt reduction and the attainment of public finance sustainability.”
– Wednesday, 30th March, 2016