Government records €44.5m deficit in third quarter 2023 – NSO

In the third quarter of 2023, the General Government recorded a deficit of €44.5m, the NSO said Friday.

Quarterly non-financial accounts

During the period July to September 2023, total revenue stood at €1,640.9m, an increase of €176.4m when compared to the corresponding quarter in 2022. This was mainly brought about by increases in Market output (€46.6m), Current taxes on income and wealth (€44.9m) and Taxes on production and imports (€41.5m).

Total expenditure in the third quarter of 2023 amounted to €1,685.4m, an increase of €36.4m over the corresponding quarter in 2022. The largest increase was recorded in Intermediate consumption (€41.8m), followed by Social benefits and social transfers in kind (€38.7m) and Current transfers payable (€29.8m). These increases were partially offset primarily by decreases in Subsidies payable (€121.5m).

Adjustments were made to the government’s Consolidated Fund data to shift to accrual-based accounts and thus comply with the requirements of ESA 2010. In the third quarter of 2023, these adjustments brought about a decrease of €251m to the Consolidated Fund surplus.

Quarterly financial accounts

In relation to financial transactions in assets, Currency and deposits increased by €141.8m during the third quarter, while Other accounts receivable decreased by €282.2m.

Considering the financial transactions in liabilities, the highest increase was recorded in Long-term debt securities (€578m). In contrast, decreases were registered in

Short-term debt securities (€346.9m) and Other accounts payable (€346.4m).

Quarterly debt

At the end of September, General Government debt stood at €9,409.8m or 49.3% of Gross Domestic Product (GDP). This equates to an increase of €714.9m over the corresponding quarter in 2022, largely reflected in Central Government Debt, which amounted to €9,407.8m. Currency and deposits stood at €455.5m, a decrease of €18.8m over September of 2022. 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 €353.3m. Long-term debt securities increased by €1,285.4m, while Short-term debt securities decreased by €560.5m, respectively. In addition, Long-term loans increased by €8.7m and Shortterm loans recorded a €0.1m increase. Local Government debt stood at €2m.

General Government guaranteed debt amounted to €1,189.1m at the end of September 2023, equivalent to 6.2% of GDP1. There was an increase of €12.4m when compared to the third quarter of 2022.