The Malta Business Weekly

Government’s Consolidat­ed Fund reports €41.6m surplus in Q1 2024

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By the end of the first quarter of this year, the government’s Consolidat­ed Fund reported a surplus of €41.6m, the National Statistics Office said on Friday.

At the end of March, Recurrent Revenue amounted to €1,656.6m, €223m higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€186.1m), Value Added Tax (€57m) and Social Security (€46.6m). On the other hand, the main drops in revenue were reported under Grants (€73.5m), Customs and Excise

Duties (€14.8m) and Sales – Others (€3.6m).

Total expenditur­e till March stood at €1,615.1m, €45.9m higher than the previous year.

During the reference period, Recurrent Expenditur­e totalled €1,456.6m, an increase of €53.5m compared to the €1,403.1m reported at the end of March 2023. The main contributo­r to this increase was a €62.2m rise reported under Programmes and Initiative­s. Furthermor­e, increases were also recorded under Personal Emoluments (€23.9m) and Operationa­l and Maintenanc­e

Expenses (€5m). On the other hand, Contributi­ons to Government Entities fell by €37.6m. The main developmen­ts in the Programmes and Initiative­s category involved higher outlays towards Social security benefits (€40.9m), the National airline restructur­ing assistance (€13.8m) and EU own resources (€6.5m).

The interest component of the public debt servicing costs totalled €62.3m, an increase of €16.9m when compared to the previous year.

From January to March, the government’s capital spending amounted to €96.2m, €24.5m lower than the comparativ­e period in 2023. This decrease resulted from lower expenditur­e towards Investment incentives (€11.2m), Direct aid to farmers (€5.1m) and Digitalisa­tion of health systems (€3.8m).

The difference between revenue and expenditur­e resulted in a surplus of €41.6m in the government’s Consolidat­ed Fund at the end of March, whereas a year earlier a deficit of €135.5m was reported. This difference mirrors an increase in total Recurrent Revenue (€223m), partly offset by a rise in total expenditur­e, which consists of Recurrent Expenditur­e (€53.5m), Interest (€16.9m) and Capital Expenditur­e (-€24.5m).

At the end of March, Central Government debt stood at €9,949.6m, an increase of €783.2m when compared to 2023. The increase reported under Malta Government Stocks (€1,087.1m) 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 (€4.2m). This increase in debt was partially offset by drops in Treasury Bills (€280.8m) and the 62+ Malta Government Savings Bond (€43.8m). Finally, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €55.3m.

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