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In 2022, the General Government registered a deficit of €981.1 million, equivalent to 5.8 per cent of GDP. The General Government debt amounted to €9,003.4 million or 53.4 per cent of GDP.

 General Government balance and debt position

The deficit of General Government for 2022 amounted to €981.1 million, an improvement of €194.7 million over the deficit recorded in the previous year. The balance is calculated as the difference between total revenue (€5,913.9 million) and expenditure (€6,894.9 million) of General Government. When comparing 2022 to 2021, total revenue increased by €493.8 million, while total expenditure increased by €299.1 million.

2022 data

In order to arrive at the General Government sector’s negative balance for 2022 of €981.1 million, adjustments were made to the balance of the Government’s Consolidated Fund (NSO news release 054/2023), which registered a deficit of €900.3 million, an improvement of €332.2 million over the deficit recorded in 2021. The adjustments are necessary to shift from the Government’s Consolidated Fund into an accruals-based exercise compiled in line with the established methodology. The adjustments also take into consideration the Extra Budgetary Units (EBUs), which are classified within the General Government sector, as well as the Local Government sector. Table 3 provides the transition from the Consolidated Fund to General Government sector.

The largest negative adjustment was related to Other accounts receivable and payable which amounted to €330.2 million, which includes amongst others the Treasury Department accruals data, the EU Funds neutralisation adjustments and the COVID-19 tax deferrals. Other negative adjustments were the rerouted transactions inside the General Government sector and public-private partnership (PPP) agreements (€13.1 million) and the Treasury Clearance Funds (TCF) in non-financial transactions (€7.1 million).

On the other hand, the main positive adjustments were the time-adjusted cash transactions (€167.9 million) and the surplus recorded by the EBUs of €70.0 million, which reflects a slight decrease of €0.9 million over 2021. Other increases were the new recording for payable tax credits (€24.3 million) and the Local Government aggregated surplus of €7.1 million.

ARTICLE WRITTEN BY NSO

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