In the first quarter of 2020, the General Government recorded a deficit of €336.7 million

Updated on

During the period January to March 2020, total revenue stood at €949.9 million, a decrease of €193.6 million when compared to the corresponding quarter in 2019. Decreases in revenue were registered in almost all categories, primarily due to the impact of the COVID-19 pandemic, with the largest being Current taxes on income and wealth (€138.1 million), followed by Market output (€20.5 million), and net social contributions (€18.9 million). Other decreases were registered in Capital transfers receivable (€11.1 million), Taxes on production and imports (€7.2 million) and Current transfers receivable (€2.5 million). On the other hand, there was an increase in Property income receivable (€4.6 million).

Total expenditure in the first quarter of 2020 amounted to €1,286.6 million, an increase of €99.5 million over the corresponding quarter in 2019. Increases in expenditure were recorded in subsidies payable (€47.7 million), mostly in relation to the COVID-19 wage supplement amounting to €36.9 million, intermediate consumption (€40.8 million), social transfers in kind (€14.3 million), compensation of employees (€11.6 million) and current transfers payable (€8.6 million). In contrast, when compared to the corresponding quarter of 2019, capital transfers payable and gross capital formation both registered a decrease of €13.9 million and €7.1 million respectively. Other decreases were recorded in property income payable (€2.6 million) and current taxes on income and wealth (€0.1 million).

In order to achieve compliance with the provisions of ESA 2010, adjustments to the Consolidated Fund data were made. In the first quarter of 2020, these adjustments brought about an increase of €24.2 million to the Consolidated Fund deficit.

Quarterly financial accounts

In relation to financial transactions in assets, during the first quarter of 2020, currency and deposits and other accounts receivable registered an increase of €143.5 million and €16.0 million respectively, followed by equity and investment fund shares (€1.8 million) and long-term loans (€0.3 million). On the other hand, long-term debt securities recorded a decrease of €6.2 million.

Considering the financial transactions in liabilities, the highest increase was recorded in short-term debt securities (€127.5 million), followed by Long-term debt securities (€92.8 million), Other accounts payable (€71.6 million) and Long-term loans (€8.3 million). Conversely, currency and deposits decreased by €1.2 million.

Quarterly debt

At the end of March, general government debt stood at €5,927.5 million, an increase of €97.2 million over the corresponding quarter in 2019. Central government debt increased by €97.2 million, amounting to €5,924.1 million. Currency and deposits stood at €378.6 million, an increase of €2.2 million over March 2019. This includes the 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 €289.1 million. Long-term debt securities decreased by €33.7 million, whereas short-term debt securities increased by €86.2 million. Additionally, long-term loans registered an increase of €45.0 million, while Short-term loans dropped by €2.6 million. Local Government debt stood at €3.4 million.

General Government guaranteed debt amounted to €1,010.6 million at the end of March 2020, a decrease of €57.4 million when compared to the corresponding period of 2019