Malta: Debt levels exceed €8 billion mark – NSO

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At the end of June, General Government debt has exceeded the €8 billion mark (€8,025.8 million), or 59.5 per cent of Gross Domestic Product (GDP).

This reflects an increase of €1,368.1 million over the corresponding quarter in 2020, largely reflected in Central Government Debt, which amounted to €8,022.9 million.

Currency and deposits stood at €468.7 million, an increase of €90.8 million over June of 2020. 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 €378.1 million. Long-term debt securities and Long-term loans increased by €866.6 million and €422.7 million, respectively. Additionally, Short-term loans registered an increase of €3.3 million, while Short-term debt securities declined by €15.3 million. Local Government debt stood at €2.9 million

According to financial estimates provided with Budget 2022, government is expecting to close off 2021 with a public deficit of €1.545 Billion, equivalent to 11% of GDP and with a public debt €8.56 Billion, which is equivalent to 61.32% of GDP. In 2022 Government is forecasting a public deficit of €850 million which would be equivalent to 5.6% of GDP, with the public debt increasing to of €9.37 billion by end 2022 – that’s 61.8% of GDP.

Data released by the NSO today also looked into the quarterly accounts, showing increased deficit levels during the period April to June 2021. Total revenue stood at €1,395.1 million, an increase of €190.3 million when compared to the corresponding quarter in 2020. Almost all components of General Government revenue recorded an increase, with current taxes on income and wealth registering an increase of €116.9 million over the same period last year.

Total expenditure in the second quarter of 2021 amounted to €1,615.2 million, an increase of €41.1 million over the corresponding quarter in 2020. The largest increase in expenditure was recorded in compensation of employees (€45.5 million). These increases were partially offset by decreases in Subsidies payable (€27.9 million), mostly owing to lower government outlay on the COVID-19 Business Assistance Programme.

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