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By the end of March 2022, the Government’s Consolidated Fund reported a deficit of €371.6 million. 

n the first quarter of 2022, Recurrent Revenue amounted to €1,148.4 million, 23.4 perIcent higher than the €930.5 million reported a year earlier. The largest increase was recorded under Social Security (€67.3 million), followed by Income Tax (€66.5 million), Value Added Tax (€37.7 million), Grants (€31.2 million), Licences, Taxes and Fines (€12.4 million), Miscellaneous Receipts (€10.7 million), Customs and Excise Duties (€8.5 million), Rents (€4.3 million), Reimbursements (€0.4 million) and Dividends on Investment (€0.3 million). The rise in revenue was partially offset by decreases under the Central Bank of Malta (€15.0 million) and Fees of Office (€6.4 million).

By the end of March 2022, total expenditure stood at €1,520.0 million, 4.1 percent higher than the previous year.

During the reference period, Recurrent Expenditure totalled €1,358.5 million, an increase of €65.0 million in comparison to the €1,293.5 million reported by the end of March 2021. The main contributor to this increase was an €83.4 million increase reported under Programmes and Initiatives. Furthermore, an increase was also witnessed under Contributions to Government Entities (€6.7 million). This rise in expenditure outweighed decreases under Operational and Maintenance Expenses (€19.6 million) and Personal Emoluments (€5.5 million). The main developments in the Programmes and Initiatives category involved added outlays towards Social security benefits, following two regular payments of retirement pensions made in March 2022 (€66.1 million), Economic stimulus payments (€48.2 million), Tax relief measures (€25.8 million) and Assistance to help the elderly live independently (€12.4 million). This rise in Programmes and Initiatives was partly offset by decreases under the Pandemic assistance schemes (€48.0 million) and Hospital concession agreements (€22.2 million). 

The interest component of the public debt servicing costs totalled €36.7 million, a decrease of €7.7 million when compared to the previous year. 

By the end of March 2022, Government’s capital spending amounted to €124.7 million, €2.3 million higher than 2021. This increase resulted from higher expenditure towards Investment incentives (€3.5 million), ICT Core services agreement (€3.0 million), Ta’ Qali National Park (€2.7 million) and the Indoor pool at the Cottonera Sports Complex (€2.4 million). This rise in Capital Expenditure was partially offset by decreases under Road construction (€7.5 million) and National Identity Management Systems (€1.6 million).

The difference between total revenue and expenditure resulted in a deficit of €371.6 million being reported in the Government’s Consolidated Fund at the end of March 2022. Compared to the same period in 2021, there was a decrease in deficit of €158.3 million. This difference mirrors an increase in total Recurrent Revenue (€218.0 million), partly offset by a rise in total expenditure, which consists of Recurrent Expenditure (€65.0 million), Capital Expenditure (€2.3 million) and Interest (-€7.7 million). Changes in expenditure and revenue reflect developments related to COVID-19.

At the end of March 2022, Central Government debt stood at €8,466.3 million, a €1,170.8 million rise from 2021. Increases reported under Malta Government Stocks (€932.1 million) and Foreign Loans (€176.9 million) were the main contributors to the rise in debt. Higher debt was also reported under the 62+ Malta Government Savings Bond (€94.1 million) and Euro coins issued in the name of the Treasury (€4.0 million). This increase in debt was partially offset by a decrease in Treasury Bills (€13.8 million). Finally, lower holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €22.5 million. 

ARTICLE WRITTEN BY NSO

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