Government records nearly €250m deficit in last quarter 2021 – NSO
In the last quarter of 2021, general government recorded a deficit of €274.9m, information issued by the NSO reveals. During the period October to December 2021, total revenue stood at €1,574.5m, an increase of €154.9m when compared to the corresponding quarter in 2020.
Almost all components of general government revenue recorded an increase, with Current taxes on income and wealth registering an increase of €112.4m over the same period in 2020.
This was followed by Net social contributions receivable (€69.4m), Market output (€36.5m), Taxes on production and imports (€21.1m), Current transfers receivable (€4.8m) and Property income receivable (€2.5m). In contrast, Capital transfers receivable decreased by €91.9m.
Total expenditure in the fourth quarter of 2021 amounted to €1,849.4m, an increase of €175.3m over the corresponding quarter in 2020. The largest increase was recorded in Compensation of employees (€52.9m), followed by Intermediate consumption (€51m), Current transfers payable (€30.9m) and Gross capital formation (€22.2m).
Other increases were registered in Capital transfers payable (€21.9m) and Social benefits and social transfers in kind (€4m). These increases were partially offset by decreases in Subsidies payable (€4.8m), Property income payable (€1.5m) and Current taxes on income and wealth (€1.3m).
To achieve compliance with the provisions of ESA 2010, adjustments to the Consolidated Fund data were made. In the last quarter of 2021, these adjustments brought about an increase of €77.5m
to the Consolidated Fund deficit.
In relation to financial transactions in assets, during the fourth quarter, Equity and investment fund shares and Long-term loans registered an increase of €31.3m and €24.4m, respectively. On the other hand, Currency and deposits recorded a decrease of €663.8m, while Other accounts receivable declined by €83.8m.
Considering the financial transactions in liabilities, the highest increase was recorded in Longterm debt securities (€296.6m), followed by Currency and deposits (€101.6m), Insurance, pensions and standardised guarantees (€17.3m) and Long-term loans (€4.2m). Short-term loans increased by €0.1m.
Decreases were registered in Other accounts payable (€646.9m) and Short-term debt securities (€113.2m).
At the end of December, General Government debt stood at €8,284.4m or 57% of Gross Domestic Product (GDP). This equates to an increase of €1,305.9m over the corresponding quarter in 2020, largely reflected in Central Government Debt, which amounted to €8,282.1m.
Currency and deposits stood at €568.4m, an increase of €97.6m over December of 2020. This includes euro coins issued in the name of the Treasury, considered a liability of central government and the 62+ Malta Government Savings Bond, the latter amounting to €376.7m. Longterm debt securities and Long-term loans increased by €906.5m and €310.9m, respectively.
Short-term debt securities decreased by €9.6m, while Short-term loans increased by €0.5m. Local Government debt stood at €2.3m. General Government guaranteed debt amounted to €1,197.9m at the end of December 2021, equivalent to 8.2% of GDP. There was an increase of €30.3m when compared to the fourth quarter of 2020.