March 2021 to March 2022: Government debt rises by €1.1bn – NSO

By the end of March, the Government’s Consolidated Fund reported a deficit of €371.6m, the NSO said Friday.

At the end of March, Central Government debt stood at €8,466.3m, a €1,170.8m rise from 2021.

In the first quarter of 2022, Recurrent Revenue amounted to €1,148.4m, 23.4% higher than the €930.5m reported a year earlier, the NSO statement said.

The largest increase was recorded under Social Security (€67.3m), followed by Income Tax (€66.5m), Value Added Tax (€37.7m), Grants (€31.2m), Licences, Taxes and Fines (€12.4m), Miscellaneous Receipts (€10.7m), Customs and Excise Duties (€8.5m), Rents (€4.3m), Reimbursements (€0.4m) and Dividends

(€0.3m).

The rise in revenue was partially offset by decreases under Central Bank of Malta (€15m) and Fees of Office (€6.4m). By the end of March, total expenditure stood at €1,520m, 4.1% higher than the previous year.

During the reference period, Recurrent Expenditure totalled €1,358.5m, an increase of €65m in comparison to the €1,293.5m reported by the end of March 2021. The main contributor to this increase was an €83.4m increase reported under Programmes and Initiatives. Furthermore, an increase was also witnessed under Contributions to Government Entities (€6.7m).

This rise in expenditure outweighed decreases under Op

on

Investment erational and Maintenance Expenses (€19.6m) and Personal Emoluments (€5.5m).

The main developments in the Programmes and Initiatives category involved added outlays towards Social security benefits, following two regular payments of retirement pensions made in March (€66.1m), Economic stimulus payments (€48.2m), Tax relief measures (€25.8m) and Assistance to help the elderly live independently (€12.4m). This rise in Programmes and Initiatives was partly offset by decreases under the Pandemic assistance schemes (€48m) and Hospital concession agreements (€22.2m).

The interest component of the public debt servicing costs totalled €36.7m, a decrease of €7.7m when compared to the previous year. By the end of March, Government’s capital spending amounted to €124.7m, €2.3m higher than 2021. This increase resulted from higher expenditure towards Investment incentives (€3.5m), ICT Core services agreement (€3m), Ta’ Qali National Park (€2.7m) and the Indoor pool at the Cottonera Sports Complex (€2.4m). This rise in Capital Expenditure was partially offset by decreases under Road construction (€7.5m) and National Identity Management Systems (€1.6m).

The difference between total revenue and expenditure resulted in a deficit of €371.6m being reported in the Government’s Consolidated Fund at the end of March. Compared

to the same period in 2021, there was a decrease in deficit of €158.3m. This difference mirrors an increase in total Recurrent Revenue (€218m), partly offset by a rise in total expenditure, which consists of Recurrent Expenditure (€65m), Capital Expenditure (€2.3m) and Interest (-€7.7m).

At the end of March, Central Government debt stood at €8,466.3m, a €1,170.8m rise from 2021. Increases reported under Malta Government Stocks (€932.1m) and Foreign Loans (€176.9m) were the main contributors to the rise in debt. Higher debt was also reported under the 62+ Malta Government Savings Bond (€94.1m) and Euro coins issued in the name of the Treasury (€4m). This increase in debt was partially offset by a decrease in Treasury Bills (€13.8m). Finally, lower holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €22.5m.