Latest Government Finance Data issued today by the National Statistics Office (NSO), show that Government’s finances for the first two months of this year are in line with projections.
Tax revenue for the first two months of 2016 increased by €47.0 million over the same period of last year and was also above what was budgeted for the first two months. The increase in revenue was broad-based as all major tax revenue components recorded increases. Revenues from customs and excise duties recorded the highest increase, rising by €16.2 million year-on-year followed by revenue from social security contributions which increased by €13.7 million. Other notable increases were also recorded in revenues from licences, taxes and fines and VAT which increased by €8.7 million and €6.4 million respectively.
PRESS RELEASE ISSUED BY THE MINISTRY FOR FINANCE
Non-tax revenue figures for the two months were highly influenced by the lower Grants component. This decrease reflected the closure of the European Union financing period 2007-2013 at the end of last year and the start of the 2014-2020 EU funding program. These reductions would be neutralized by lower EU funded capital expenditure. In fact, capital expenditure for the first two months decreased by €31.1 million over the previous year.
Recurrent expenditure increased by €43.6 million or 9.5 per cent which is also within budget for this year. The main contributors were contributions to government entities which increased by €20.8 million followed by expenditure on programs and initiatives which rose by €11.8 million.
For the first time, NSO has also published data on Government Expenditure by the Classification of Functions of Government (COFOG). Looking at such expenditure by function, the highest increases were recorded in social protection, economic affairs and health.
Minister for Finance Edward Scicluna remarked that, “it is encouraging to note that while expenditures are within budget, tax revenues are still outperforming our projections.”
– Thursday, 24th March, 2015