Malta: Deficit on the increase as government salary bill increases €29.2m in third quarter

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During the third quarter of 2021, the General Government recorded a deficit of €267.6 million, NSO data reveals. Salaries continued to play a significant role in expenditure increase, with some €29.2 million more paid in this specific period.

During the period July to September 2021, Government total revenue stood at €1,313.6 million, an increase of €65.6 million when compared to the corresponding quarter in 2020. Almost all components of General Government revenue recorded an increase, with Taxes on production and imports registering an increase of €40.0 million over the same period in 2020. This was followed by Market output (€21.5 million), Property income receivable (€20.2
million), Capital transfers receivable (€5.8 million) and Current transfers receivable (€1.2 million). In contrast,
Net social contributions receivable registered a decrease of €16.7 million, while Current taxes on income and
wealth fell by €6.4 million.

Total expenditure in the third quarter of 2021 amounted to €1,581.1 million, an increase of €122.5 million over the corresponding quarter in 2020. The largest increase was recorded in Current transfers payable (€72.6 million), followed by Intermediate consumption (€62.1 million), and Compensation of employees (€29.2 million).

Other increases were registered in Social benefits and social transfers in kind (€9.9 million), Property income payable (€8.5 million), Capital transfers payable (€7.2 million) and Current taxes on income and wealth (€0.1 million). These increases were partially offset by decreases in Subsidies payable (€48.6 million), mostly owing to lower government outlay on the COVID-19 Business Assistance Programme, and Gross capital formation (€18.5 million)

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