Government’s Consolidated Fund reported a deficit of €82.3m

By the end of January, Recurrent Revenue amounted to €446m, €94.1m higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€31.3m), Licences, Taxes and Fines (€11.9m) and Grants (€11.7m).

Total expenditure in January stood at €528.3m, €55.4m higher than the previous year.

During the reference period, Recurrent Expenditure totalled €487.4m, an increase of €44.1m compared to the €443.3m reported at the end of January 2023. The main contributor to this increase was a €47.5m rise reported under Programmes and Initiatives. Furthermore, increases were also recorded under Operational and Maintenance Expenses (€11.2m) and Personal Emoluments (€7.3m). On the other hand, Contributions to Government Entities fell by €21.9m, following lower contributions, among others, towards the Malta Tourism Authority (€19.9m) and Mental Health Services (€2.7m).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€40.9m), Energy Support Measures (€13.2m) and Allocation in respect of Local Councils (€4.4m). The increase in outlay was partially offset by a drop witnessed under Hospital concession agreements (€15.2m).

The interest component of the public debt servicing costs totalled €19.8m, an increase of €5.3m when compared to the previous year.

In January, Government’s capital spending amounted to €21.1m, €6m higher than 2023. This increase resulted from higher expenditure towards Road construction and improvements (€4m), Property, plant and equipment (€2.9m) and Maritime facilities (€2.9m). Conversely, outlay towards National Identity Management Systems fell by €2m.

The difference between total revenue and expenditure resulted in a deficit of €82.3m being reported in the Government’s Consolidated Fund at the end of January. Compared to the same period in 2023, there was a decrease in deficit of €38.7m. This difference mirrors an increase in total Recurrent Revenue (€94.1m), partly offset by a rise in total expenditure, which consists of Recurrent Expenditure (€44.1m), Interest (€5.3m) and Capital Expenditure (€6m).

At the end of January, Central Government debt stood at €9,759.4m, an increase of €856.9m when compared to 2023. The increase reported under Malta Government Stocks (€1,037.1m) was the main contributor to the rise in debt. Higher debt was also reported under Foreign Loans (€71.9m) and Euro coins issued in the name of the Treasury (€4.1m). This increase in debt was partially offset by drops in Treasury Bills (€177.4m) and the 62+ Malta Government Savings Bond (€23.4m). Finally, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €55.5m.