Deficit of €26 million recorded in first quarter of the year

● Debt down, Property Price Index up

In the first quarter of 2018, the General Government recorded a deficit of €26 million, the National Statistics Office (NSO) said yesterday.

During the period January-March 2018, total revenue stood at €1,001.9 million, an increase of €36.3 million when compared to the first quarter of 2017.

This increase in revenue was triggered mainly by higher Current taxes on income and wealth (€20.7 million).

Increases were also registered in Taxes on production and imports (€19.4 million), Net social contributions receivable (€15.0 million) and Property income receivable (€4.0 million). Decreases were recorded in Market output (€17.2 million), Current transfers receivable (€3.0 million) and Capital transfers receivable (€2.6 million).

Total expenditure in the first quarter amounted to €1,028.0 million, an increase of €100.8 million from the first quarter of 2017.

Increases were recorded mainly in Capital transfers payable (€56.3 million), Compensation of employees (€32.6 million), Social benefits and social transfers in kind (€16.9 million), Current transfers payable (€7.3 million) and Intermediate consumption (€5.9 million). Decreases were recorded in Subsidies payable (€8.6 million), Gross capital formation (€6.3 million) and Property income payable (€3.4 million).

In order to achieve compliance with the provisions of ESA 2010, adjustments to the Consolidated Fund data were made. In the first quarter of 2018, these adjustments triggered a decrease of €34.8 million to the deficit of the Consolidated Fund.

During the first quarter, in relation to financial transactions in assets, Currency and deposits registered a decrease of €38.9 million over the previous quarter. Conversely, Equity and investment fund shares increased by €1.0 million whereas Other accounts receivable increased by €77.4 million.

With regard to financial transactions in liabilities, the major increase was recorded in Short-term debt securities, €92.2 million. Conversely, Long-term debt securities witnessed a negative transaction of €64.0 million.

Additionally, Other accounts payable went up by €41.7 million while Long-term loans went down by €0.1 million. Currency and deposits decreased by €0.4 million.

Total General Government debt outstanding at the end of March decreased by €199.6 million over the first quarter of 2017.

General Government debt amounted to €5,691.5 million, of which €5,687.7 million related to Central Government.

The decrease in Central Government debt was underpinned by a drop in Long-term debt securities of €342.2 million. Conversely, Short-term debt securities increased by €43.8 million. Additionally, Long-term loans decreased by €9.6 million while Short-term loans increased by €2.9 million.

Currency and deposits stood at €178.1 million, a rise of €105.3 million over March 2017, and includes the euro coins issued in the name of the Treasury considered as liability for Central Government and the 62+ Malta Government Savings Bond, the latter amounting to €99.6 million.

In addition, the Local Government debt stood at €3.8 million.

The Government guaranteed debt amounted to €1,085.0 million at the end of March 2018, a decrease of €342.2 million when compared to the same period last year.