Consistent progress for Malta’s public finances
Two NSO releases confirm the consistent progress being made with regards to Malta’s public finances.
The first release confirms that the Government achieved its deficit target for 2014, 2.1%, and also that national debt fell to 68.3% of GDP, from 69.6% a year earlier.
The second release shows that during the second quarter of 2015, growth-friendly fiscal consolidation continued to progress. The Quarterly Accounts for the General Government show the deficit during April – June 2015 standing at €47 million, significantly lower than in the corresponding period in 2014 (€72 million).
This improvement was driven by a very healthy increase in revenue from income taxes, which rose by €40 million despite a further reduction in tax rates. This positive result reflects the positive impact of higher economic activity on government revenue. On the other hand, increased efforts to improve public health and education services underpins the rise in government expenditure. During the second quarter of 2015, there was also a very significant rise in capital investment, which at €83 million was 26% higher than in the corresponding period of 2014.
Figures also show that the debt in June 2015 represents a decline of €100 million over the same quarter of 2014. This points towards a corresponding fall in the debt ratio, although this needs to be confirmed in a forthcoming Eurostat release.
Minister for Finance, Prof. Scicluna remarked that; “The official reports on the progress of our public finances are confirming that while the fiscal consolidation is still on track, this is not being accomplished at the cost of economic growth”.