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In the first eight months of 2022, Recurrent Revenue amounted to €3,623.9 million, 12.0 per cent higher than the €3,235.0 million reported a year earlier. The largest increase was recorded under Value Added Tax (€177.7 million), followed by Income Tax (€126.9 million), Social Security (€80.9 million), Reimbursements (€9.7 million), Licences, Taxes and Fines (€8.9 million), Rents (€2.8 million), Dividends on Investment (€2.6 million), Central Bank of Malta (€2.2 million) and Grants (€0.5 million). The rise in revenue was partially offset by decreases under Miscellaneous Receipts (€10.2 million), Fees of Office (€7.9 million) and Customs and Excise Duties (€5.3 million).

By the end of August 2022, total expenditure stood at €3,982.8 million, €1.3 million lower than the previous year.

During the reference period, Recurrent Expenditure totalled €3,517.7 million, an increase of €39.7 million in comparison to the €3,477.9 million reported in the first eight months of 2021. The main contributor to this increase was a €38.4 million increase reported under Programmes and Initiatives. Furthermore, increases were also witnessed under Personal Emoluments (€15.2 million) and Contributions to Government Entities (€3.6 million). This rise in expenditure outweighed a decrease under Operational and Maintenance Expenses (€17.5 million). The main developments in the Programmes and Initiatives category involved added outlays towards Energy support measures (€62.2 million), Economic stimulus payments (€48.0 million), Social security benefits (€35.9 million), Tax relief measures (€26.0 million), Gas stabilisation fund (€10.0 million), Extension of school transport network (€6.3 million). This rise in Programmes and Initiatives was partly offset by a decrease under the Pandemic assistance schemes (€149.9 million).

The interest component of the public debt servicing costs totalled €112.4 million, a decrease of €10.7 million when compared to the previous year

By the end of August 2022, Government’s capital spending amounted to €352.8 million, €30.3 million lower than 2021. This decrease resulted from lower expenditure towards Road construction and improvements (€12.5 million), Property, plant and equipment (€11.1 million), Gozo Aquatic Centre (€8.0 million), Acquisitions of property for public purposes (€5.9 million), Investments in physical assets (€4.2 million), National Identity Management System (€2.6 million) and ICT core services agreement (€2.8 million). This decrease in Capital Expenditure was partially offset by increases under Film industry incentives (€10.3 million) and Ta’ Qali National Park (€7.9 million).

The difference between total revenue and expenditure resulted in a deficit of €359.0 million being reported in the Government’s Consolidated Fund at the end of August 2022. Compared to the same period in 2021, there was a decrease in deficit of €390.1 million. This difference mirrors an increase in total Recurrent Revenue (€388.8 million), coupled with a decrease in total expenditure, which consists of Recurrent Expenditure (€39.7 million), Interest (-€10.7 million) and Capital Expenditure (-€30.3 million) (Table 1).

At the end of August 2022, Central Government debt stood at €8,559.0 million, an increase of €874.5 million from 2021. The increase reported under Malta Government Stocks (€657.2 million) was the main contributor to the rise in debt. Higher debt was also reported under Treasury Bills (€163.5 million), the 62+ Malta Government Savings Bond (€93.3 million) and Euro coins issued in the name of the Treasury (€5.7 million). This increase in debt was partially offset by a decrease in Foreign Loans (€0.1 million). Finally, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €45.1 million (Table 6)

ARTICLE WRITTEN BY NSO

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