Government records nearly €250m deficit in last quarter 2021 – NSO

In the last quarter of 2021, the General Government recorded a deficit of €274.9 million, the NSO.

During the period October to December 2021, total revenue stood at €1,574.5 million, an increase of €154.9 million when compared to the corresponding quarter in 2020.

Almost all components of General Government revenue recorded an increase, with Current taxes on income and wealth registering an increase of €112.4 million over the same period in 2020.

This was followed by Net social contributions receivable (€69.4 million), Market output (€36.5 million), Taxes on production and imports (€21.1 million), Current transfers receivable (€4.8 million) and Property income receivable (€2.5 million). In contrast, Capital transfers receivable decreased by €91.9 million.

Total expenditure in the fourth quarter of 2021 amounted to €1,849.4 million, an increase of €175.3 million over the corresponding quarter in 2020. The largest increase was recorded in Compensation of employees (€52.9 million), followed by Intermediate consumption (€51.0 million), Current transfers payable (€30.9 million) and Gross capital formation (€22.2 million).

Other increases were registered in Capital transfers payable (€21.9 million) and Social benefits and social transfers in kind (€4.0 million). These increases were partially offset by decreases in Subsidies payable (€4.8 million), Property income payable (€1.5 million) and Current taxes on income and wealth (€1.3 million).

To achieve compliance with the provisions of ESA 2010, adjustments to the Consolidated Fund data were made. In the last quarter of 2021, these adjustments brought about an increase of €77.5 million to the Consolidated Fund deficit.

In relation to financial transactions in assets, during the fourth quarter, Equity and investment fund shares and Long-term loans registered an increase of €31.3 million and €24.4 million, respectively. On the other hand, Currency and deposits recorded a decrease of €663.8 million, while Other accounts receivable declined by €83.8 million.

Considering the financial transactions in liabilities, the highest increase was recorded in Long-term debt securities (€296.6 million), followed by Currency and deposits (€101.6 million), Insurance, pensions and standardised guarantees (€17.3 million) and Long-term loans (€4.2 million). Short-term loans increased by €0.1 million.

Decreases were registered in Other accounts payable (€646.9 million) and Short-term debt securities (€113.2 million).

At the end of December, General Government debt stood at €8,284.4 million, or 57.0 per cent of Gross Domestic Product (GDP). This equates to an increase of €1,305.9 million over the corresponding quarter in 2020, largely reflected in Central Government Debt, which amounted to €8,282.1 million.

Currency and deposits stood at €568.4 million, an increase of €97.6 million over December of 2020. This includes euro coins issued in the name of the Treasury, considered a liability of Central Government, and the 62+ Malta Government Savings Bond, the latter amounting to €376.7 million. Long-term debt securities and Long-term loans increased by €906.5 million and €310.9 million, respectively.

Short-term debt securities decreased by €9.6 million, while Short-term loans increased by €0.5 million. Local Government debt stood at €2.3 million. General Government guaranteed debt amounted to €1,197.9 million at the end of December 2021, equivalent to 8.2 per cent of GDP. There was an increase of €30.3 million when compared to the fourth quarter of 2020.