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STATISTICS

GOVERNMENT FINANCE DATA: JANUARY-NOVEMBER 2020

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INDEXGDPL2020-6By the end of November 2020, the Government’s Consolidated Fund reported a defi cit of €1,334.0 million.

Between January and November 2020, recurrent revenue amounted to €3,732.1 million, 15.0 per cent lower than the €4,389.4 million reported up to the end of November 2019. Income tax recorded the largest decrease of €203.7 million. Additional drops were also witnessed under Value Added Tax (€181.3 million), Licences, Taxes and Fines (€84.4 million), Grants (€82.8 million), Customs and Excise Duties (€72.7 million), Social Security (€58.3 million), Reimbursements (€10.7 million), Rents (€3.4 million), Central Bank of Malta (€3.0 million), Dividends on Investment (€1.3 million) and Interest on Loans made by Government (€0.1 million). Increases recorded under Fees of Offi ce (€24.0 million) and Miscellaneous Receipts (€20.3 million) marginally off set the drop in revenue. By the end of November 2020, total expenditure stood at €5,066.1 million, 15.6 per cent higher than the corresponding period in 2019. During the reference period, recurrent expenditure totalled €4,084.8 million, a rise of €329.0 million in comparison to the €3,755.8 million reported in 2019. The main contributor to this increase was a €168.2 million rise reported under Programmes and Initiatives. Furthermore, increases in outlay were also witnessed under Contributions to Government Entities (€96.5 million), Operational and Maintenance Expenses (€49.5 million) and Personal Emoluments (€14.8 million). The main developments in the Programmes and Initiatives category involved added outlays towards Social security benefi ts (€57.6 million, of which €14.5 million were spent on COVID-19 social benefi ts), the Economic regeneration voucher scheme (€45.3 million), Medicines and surgical materials (€41.2 million), Housing programmes (€12.7 million), Feed-in-tariff (€12.4 million), Public service obligation for public transport (€9.9 million), Extension of the school transport network (€9.9 million), Church schools (€9.7 million), Waiting lists for medical services (€7.4 million) and Cancer treatment (€6.7 million). The rise in expenditure was partially off set by drops reported under Social security state contribution (€29.0 million, also reported as revenue) and EU own resources (€15.5 million). The interest component of the public debt servicing costs totalled €164.8 million, an €8.9 million drop from the same period in 2019. By the end of November 2020, Government’s capital spending amounted to €816.6 million, €364.7 million higher than 2019, largely due to additional spending towards Investment incentives (€322.7 million). These incentives amounted to €346.8 million, of which €301.5 million was spent in relation to the COVID-19 Business Assistance programme. Furthermore, there were reported increases under Property, plant and equipment (€42.3 million), ICT (€14.4 million) and Road construction/improvements (€13.7 million). In contrast, spending towards projects fi nanced by EU Structural funds 2014-2020 fell by €21.9 million. The diff erence between total revenue and expenditure resulted in a defi cit of €1,334.0 million being reported in the Government’s Consolidated Fund at the end of November 2020. This represented an increase in defi cit of €1,342.1 million when compared to the surplus of €8.0 million witnessed during the same period in 2019. This diff erence mirrors an increase in total expenditure, consisting of recurrent expenditure (€329.0 million), interest (-€8.9 million) and capital expenditure (€364.7 million), in addition to a drop in recurrent revenue (€657.3 million) (Table 1). Decreases in revenue and increases in expenditure refl ect developments related to COVID-19. At the end of November 2020, Central Government debt stood at €6,756.4 million, a €1,451.1 million rise from 2019. Increases reported under Malta Government Stocks (€873.5 million) and Treasury Bills (€355.2 million) were the main reasons for the rise in debt. Foreign Loans registered an increase of €119.9 million, largely refl ecting the new EU loan of €120 million from the temporary Support to mitigate Unemployment Risks in an Emergency (SURE) instrument. Higher debt was also reported under the 62+ Malta Government Savings Bond (€91.0 million) and Euro coins issued in the name of the Treasury (€1.6 million). Finally, lower holdings by government funds in Malta Government Stocks resulted in an increase in debt of €10.0 million (Table 6).

 

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