Government spending has increased by over ten percent in the first six months of 2001 compared to spending in the same period in the year before.

Spending has gone up from $278.8 million for the first six months of 2000 to $306.7 million for the same period in 2001, according to figures released by the Government Information Services on central Government Expenditure.

And while spending has gone up, by more than ten percent, revenue has been raised by only 8.5 percent during the same period compared to the year before.

In 2000 the first six months saw revenue at $304.2 million, compared to $330 million for the first six months of 2001.

This leaves the Government with a surplus of $23.3 million for the period.

The biggest hike in spending was on "goods and other services" which rose 27.3 percent or $16.6 million from $60.7 million in first half of 2000 to $77.3 million for the same period in 2001.

The second largest increase was in public debt which year over year for the six months rose 24 percent or $1.4 million from $5.8 million to $7.2 million.

The cost of wages and salaries rose from $122 million in the first six moths of 2000 to $135.4 million in the same period of 2001, a rise of $13.4 million or 11 percent.

Money spent on grants and contributions rose only marginally, up from $58.6 million to $59.8 million year on year for the six months - a rise of two percent or $1.2 million.

Inflation currently stands at three percent.

The total Current Expenditure, or the day-to-day running costs of Government, rose from $247.1 million to $279.9 million for the six month period for 2000 and 2001 respectively.

This is a rise of $32.8 million or 13.3 percent.

On the other hand Capital Expenditure, money spent on Large projects such as Government building projects, fell by $4.4 million or 14.1 percent from $31.2 million to $26.8 million for the first six months of 2000 and 2001 respectively.

Government's revenue has increased as the amount of land tax and the amount of taxes paid by international business have increased hugely.

The highest tax increases go jointly to international company tax and land tax, which both increased 26.4 percent in the first six months of 2001 compared to the same period the year before.

Land tax collected went up from $14.8 million to $18.5 million during the first six months of 2000 and 2001 respectively, a rise of $3.9 million.

A hike in the international company taxes collected saw this figure rise from $34.8 million in the first six months of 2000, to $44 million in the same period this year, up $9.2 million.

The amount of tax raised from vehicle licences rose from $8.4 million to $10.2 million in the first six months of 2000 and 2001 respectively, a rise of 21.4 percent or $1.8 million.

Next highest hike was in telecommunications tax, which rose from $3.7 million to $4.4 million, up $0.7 million or 18.9 percent.

Customs duty rose by $6.1 million from $84.2 million to $90.3 million, a rise of 7.2 percent, and revenue from stamp duty rose from $12.8 million to $13.3 million, up $0.5 million or 3.9 percent.

But revenues from hotel occupancy tax and passenger tax were both down year on year. Hotel occupancy tax income fell by 17.8 percent or $0.8 million from $4.5 million to $3.7 million for the first six months of 2000 and 2001 respectively while passenger tax revenue fell from $8.9 million to $8.6 million for the first six months of 2000 and 2001, a drop of 3.7 percent.

Total expenditure for the second quarter of 2001 rose by $16.7 million or 13.6 percent year on year to $139.4. Total revenue for the second quarter of 2001 rose by $8.5 million or 8.2 percent to $119.9.

This leaves a deficit for the second quarter of $27.5 million.