Malta’s 2022 deficit grows to €373 by end of May

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By the end of May 2022, the Government’s Consolidated Fund reported a deficit of €373.2 million, the NSO said today.

In the first five months of 2022, Recurrent Revenue amounted to €2,129.4 million, 16.2 per cent higher than the
€1,831.7 million reported a year earlier. The largest increase was recorded under Income Tax (€113.5 million),
followed by Value Added Tax (€74.8 million), Grants (€58.8 million) and Social Security (€39.2 million).

The rise in revenue was partially offset by decreases under Fees of Office (€13.4 million) and Miscellaneous Receipts (€4.4 million).

By the end of May 2022, total expenditure stood at €2,502.6 million, 0.7 per cent higher than the previous year.

During the reference period, Recurrent Expenditure totalled €2,213.5 million, an increase of €28.3 million in
comparison to the €2,185.2 million reported by the end of May 2021. The main contributor to this increase was a
€53.8 million increase reported under Programmes and Initiatives.

Furthermore, an increase was also witnessed under Personal Emoluments (€1.4 million). This rise in expenditure outweighed decreases under Operational
and Maintenance Expenses (€15.8 million) and Contributions to Government Entities (€11.2 million). The main
developments in the Programmes and Initiatives category involved added outlays towards Economic stimulus
payments (€48.2 million), Social security benefits (€28.0 million), Tax relief measures (€25.8 million), Gas
stabilisation fund (€7.1 million) and Extension of school transport network (€6.1 million). This rise in Programmes
and Initiatives was partly offset by a decrease under the Pandemic assistance schemes (€60.4 million).
The interest component of the public debt servicing costs totalled €70.1 million, a decrease of €4.1 million when
compared to the previous year.

By the end of May 2022, Government’s capital spending amounted to €219.0 million.

The difference between total revenue and expenditure resulted in a deficit of €373.2 million being reported in
the Government’s Consolidated Fund at the end of May 2022. Compared to the same period in 2021, there was
a decrease in deficit of €280.1 million. This difference mirrors an increase in total Recurrent Revenue (€297.6
million), partly offset by a rise in total expenditure, which consists of Recurrent Expenditure (€28.3 million), Interest
(-€4.1 million) and Capital Expenditure (-€6.7 million).

At the end of May 2022, Central Government debt stood at €8,409.9 million, a €579.7 million rise from 2021.

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