New NSO figures indicate that Malta’s deficit improved slightly in the first four months of 2024 compared to the same period last year. However, the overall debt burden continues to rise, data shows.
Between January and April 2024, Recurrent Revenue amounted to €2,251.9 million, €361.1 million higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€272.2 million), Value Added Tax (€68.5 million) and Social Security (€68.3 million). On the other hand, the main drops in revenue were reported under Grants (€69.8 million), Customs and Excise Duties (€14.3 million) and Sales – Others (€5.9 million).
Total expenditure till April 2024 stood at €2,229.0 million, €145.7 million higher than the previous year.
During the reference period, Recurrent Expenditure totalled €1,979.1 million, an increase of €135.1 million compared to the €1,844.0 million reported a year earlier. The main contributor to this increase was a €96.9 million rise reported under Programmes and Initiatives. Further increases were also recorded under Personal Emoluments (€31.4 million), Operational and Maintenance Expenses (€5.8 million) and Contributions to Government Entities (€1.1 million). The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€52.2 million), the National airline restructuring assistance (€13.8 million) and Child care for all (€7.3 million).
The interest component of the public debt servicing costs totalled €83.0 million, an increase of €17.0 million when compared to the previous year.
From January to April 2024, Government’s capital spending amounted to €166.9 million, €6.5 million lower than the comparative period in 2023. This decrease resulted from lower expenditure towards Investment incentives (€11.2 million), National Identity Management Systems (€5.9 million) and Direct aid to farmers (€5.1 million). The drop was partially offset by increases reported under Enhancing uptake of electric vehicles (€9.1 million) and Road construction and improvements (€9.0 million).
The difference between total revenue and expenditure resulted in a surplus of €22.9 million being reported in the Government’s Consolidated Fund at the end of April 2024, whereas a year earlier a deficit of €192.5 million was registered. This difference mirrors an increase in total Recurrent Revenue (€361.1 million), partly offset by a rise in total expenditure, which consists of Recurrent Expenditure (€135.1 million), Interest (€17.0 million) and Capital Expenditure (-€6.5 million)
At the end of April 2024, Central Government debt stood at €9,927.2 million, an increase of €764.2 million when compared to 2023. The increase reported under Malta Government Stocks (€1,087.1 million) was the main contributor to the rise in debt. Higher debt was also reported under Foreign Loans (€71.9 million) and Euro coins issued in the name of the Treasury (€3.8 million). This increase in debt was partially offset by drops in Treasury Bills (€306.7 million) and the 62+ Malta Government Savings Bond (€43.6 million).
