Malta: Government ends 2021 with €1.24bn deficit

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The public purse has ended the year 2021 with a deficit of 1.24 billion euro, the NSO reported today. Compared to the same period in 2020, there was a decrease in deficit of €225.7 million.

This difference mirrors an increase in total Recurrent Revenue (€1,005.2 million), partially offset by a rise in total expenditure, consisting of Recurrent Expenditure (€1,079.2 million), Interest (€2.6 million) and Capital Expenditure (-€302.3 million). Changes in expenditure and revenue reflect developments related to COVID-19.

At the end of 2021, Central Government debt stood at €8,097.4 million, a €1,332.2 million rise from 2020. Increases reported under Malta Government Stocks (€995.0 million) and Foreign Loans (€299.9 million) were
the main contributors to the rise in debt.

Higher debt was also reported under the 62+ Malta Government Savings Bond (€94.4 million) and Euro coins issued in the name of the Treasury (€3.1 million). This increase in debt was partially offset by a decrease in Treasury Bills (€44.6 million).

The NSO reported that recurrent Expenditure totalled €5,718.1 million, a rise of €1,079.2 million in comparison to the €4,638.9 million reported in 2020. The main contributor to this increase was a €883.5 million rise reported under Programmes and Initiatives. Furthermore, increases were also witnessed under Personal Emoluments (€115.8 million), Contributions to Government Entities (€67.2 million) and Operational and Maintenance Expenses (€12.7 million).

The largest development in the Programmes and Initiatives category was related to the Pandemic assistance scheme (€378.1 million), which includes the COVID-19 Business Assistance Programme. By the end of December 2021, Government’s capital spending amounted to €734.9 million, €302.3 million lower than 2020.

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