Government debt edges up to €9.17 billion by mid-2023

By the end of June 2023, the Government’s Consolidated Fund reported a deficit of €258.5 million, the NSO said Friday. Central Government debt stood at €9,170.7 million, an increase of €756.8 million when compared to 2022

In the first half of 2023, Recurrent Revenue amounted to €2,920.8 million, €354.6 million higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€164.1 million), Grants (€68.1 million), Social Security (€42.2 million) and Value Added Tax (€30.6 million). On the other hand, the main drops in revenue were reported under Central Bank of Malta (€22.2 million) and Miscellaneous Receipts (€2.0 million).

Total expenditure by the end of June 2023 stood at €3,179.3 million, €148.9 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €2,764.0 million, an increase of €90.1 million compared to the €2,673.9 million reported at the end of June 2022. The main contributor to this increase was a €58.6 million rise reported under Contributions to Government Entities. Higher contributions were, among others, made towards the Malta College of Arts, Science and Technology (€10.5 million), Malta Tourism Authority (€8.0 million) and Mental Health Services (€7.6 million). Furthermore, increases were also recorded under Operational and Maintenance Expenses (€42.3 million) and Personal Emoluments (€24.8 million).

Conversely, Programmes and Initiatives fell by €35.6 million. The main developments in the Programmes and Initiatives category involved lower outlays towards Pandemic assistance schemes (€107.5 million), Economic stimulus payment (€48.1 million) and EU own resources (€41.5 million). The decrease in expenditure was partially offset mainly by increases under Energy support measures (€83.4 million), Social security benefits (€50.8 million) and Medicines and surgical materials (€10.3 million).

The interest component of the public debt servicing costs totalled €100.0 million, an increase of €14.4 million when compared to the previous year, the NSO reported.

Between January and June 2023, Government’s capital spending amounted to €315.3 million, €44.4 million higher than the figure recorded in 2022. This increase resulted primarily from higher expenditure towards the REPowerEU initiative (€20.0 million), Property, plant and equipment (€17.9 million) and National Identity Management Systems (€4.4 million).

The difference between total revenue and expenditure resulted in a deficit of €258.5 million, reported in the Government’s Consolidated Fund at the end of June 2023. Compared to the same period in 2022, there was a decrease in deficit of €205.7 million. This difference mirrors an increase in total Recurrent Revenue (€354.6 million), partly offset by a rise in total expenditure, which consists of Recurrent Expenditure (€90.1 million), Interest (€14.4 million) and Capital Expenditure (€44.4 million).

At the end of June 2023, Central Government debt stood at €9,170.7 million, an increase of €756.8 million when compared to 2022. The increase reported under Malta Government Stocks (€793.0 million) was the main contributor to the rise in debt. Higher debt was also reported under Treasury Bills (€77.3 million) and Euro coins issued in the name of the Treasury (€5.0 million). This increase in debt was partially offset by a decrease in the 62+ Malta Government Savings Bond (€117.1 million). Finally, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €1.2 million.