QUARTERLY ACCOUNTS FOR GENERAL GOVERNMENT: Q3/2020

INDEXGDPL2020In the third quarter of 2020, the General Government recorded a defi cit of €316.3 million.

During the period July to September 2020, total revenue stood at €1,116.8 million, a decrease of €92.5 million when compared to the corresponding quarter in 2019. Decreases in revenue are primarily due to the impact of the COVID-19 pandemic, with the largest being Taxes on production and imports (€86.7 million), followed by Market output (€13.5 million), Current transfers receivable (€7.7 million) and Current taxes on income and wealth (€6.3 million). These were partially off set by increases in Capital transfers receivable (€15.2 million), Net social contributions (€5.1 million) and Property income receivable (€1.4 million) (Table 2). Total expenditure in the third quarter of 2020 amounted to €1,433.1 million, an increase of €261.6 million over the corresponding quarter in 2019. Increases in expenditure were recorded in Subsidies payable (€137.5 million), mostly in relation to the COVID-19 Business Assistance programme amounting to €92.8 million, Intermediate consumption (€68.8 million), Gross capital formation (€30.6 million), Compensation of employees (€22.9 million), Social benefi ts and social transfers in kind (€14.8 million) and Capital transfers payable (€5.4 million). In contrast, when compared to the corresponding quarter in 2019, Current transfers payable and Property income payable registered a decrease of €15.4 million and €3.0 million, respectively (Table 3). In order to achieve compliance with the provisions of ESA 2010, adjustments to the Consolidated Fund data were made. In the third quarter of 2020, these adjustments brought about an increase of €73.0 million to the Consolidated Fund defi cit (Table 4). Quarterly fi nancial accounts (t/t-1) In relation to fi nancial transactions in assets, during the third quarter, Currency and deposits and Long-term loans registered a decrease of €36.9 million and €19.7 million respectively, followed by Other accounts receivable (€8.8 million) and Short-term loans (€1.6 million). Conversely, Long-term debt securities and Equity and investment fund shares increased by €2.1 million and €0.7 million, respectively (Table 7). Considering the fi nancial transactions in liabilities, the highest increase was recorded in Long-term debt securities (€212.1 million), followed by Other accounts payable (€101.7 million) and Currency and deposits (€93.7 million). On the other hand, decreases were recorded in Short-term debt securities (€96.9 million), Long-term loans (€6.1 million) and Short-term loans (€2.9 million) (Table 8). Quarterly debt (t/t-4) At the end of September, General Government debt stood at €6,838.8 million, an increase of €1,192.9 million over the corresponding quarter in 2019. The debt-to-GDP ratio stood at 53.7 per cent of GDP1 . This increase was largely refl ected in Central Government debt, which amounted to €6,835.6 million. Currency and deposits stood at €472.4 million, an increase of €93.7 million over September 2019. This includes the euro coins issued in the name of the Treasury, considered a liability of Central Government, and the 62+ Malta Government Savings Bond, the latter amounting to €382.0 million. Short-term and Long-term debt securities increased by €420.7 million and €682.4 million, respectively. Additionally, Long-term loans registered an increase of €3.6 million, while Short-term loans decreased by €7.5 million. Local Government debt stood at €3.3 million (Table 9). General Government guaranteed debt amounted to €1,108.8 million at the end of September 2020, equivalent to 8.7 per cent of GDP1 . Compared to 2019Q3, there was an increase of €39.0 million (Table 9).

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