Record low 2016 third quar­ter deficit

Malta Independent - - NEWS -

The Quar­terly Ac­counts for Gen­eral Govern­ment, pub­lished yes­ter­day by the Na­tional Statis­tics Of­fice (see page 7), show that the govern­ment has suc­ceeded in record­ing the low­est third quar­ter deficit since data on the Gen­eral Govern­ment deficit started be­ing com­piled.

The Fi­nance Min­istry yes­ter­day noted that the Gen­eral Govern­ment deficit for the third quar­ter of 2016 fell to €2.4 mil­lion from an al­ready rel­a­tively low amount of €20.5 mil­lion recorded a year ear­lier. The deficit re­duc­tion re­sulted from an ex­pen­di­ture growth which was kept lower than the rev­enue in­crease. In fact, while rev­enue in­creased by €66.7 mil­lion or 7.5 per cent, ex­pen­di­ture in­creased by €48.5 mil­lion or 5.4 per cent.

The min­istry ex­plained, “The growth in to­tal rev­enue was mainly fu­elled by in­creases in rev­enues from mar­ket out­put as well as cur­rent taxes on in­come and wealth, the lat­ter re­flect­ing the dy­namic per­for­mance of the labour mar­ket. Higher pro­ceeds were also recorded in other rev­enue com­po­nents in­clud­ing pro­duc­tion and im­ports which is re­flect­ing the per­sis­tent growth in do­mes­tic de­mand, and net so­cial con­tri­bu­tions.

“On the ex­pen­di­ture side, the main in­crease was recorded in in­ter­me­di­ate con­sump­tion. Other in­creases were recorded in com­pen­sa­tion of em­ploy­ees, cur­rent and cap­i­tal trans­fers, and sub­si­dies payable, as well as in so­cial ben­e­fits and so­cial trans­fers in kind.”

Fi­nance Min­is­ter Prof Ed­ward Sci­cluna com­mented, “This pos­i­tive fis­cal re­sult for the third quar­ter of the year con­tin­ues to con­firm that we are in­deed on track in reach­ing the record low an­nual deficit tar­get of 0.7 per cent, set for 2016.”

Newspapers in English

Newspapers from Malta

© PressReader. All rights reserved.