The primary reason for the revenue increase was a €90.9m rise in income tax.

Moreover, growth was registered under value-added tax (€56.9m), social security (€47m), grants (€44.3m), licences, taxes and fines (€15.7m), rents (€10.1m), customs and excise duties (€7.3m), miscellaneous receipts (€6.8m), fees of office (€3.6m) and reimbursements (€3.5m).

Nevertheless, drops in outlay were recorded under dividends on investment (€11.9m) and the Central Bank of Malta (€8m).

The main contributor to the expenditure increase was a €141.3m rise in programmes and initiatives. Furthermore, rises in outlay were also registered by personal emoluments (€34.6m), contributions to government entities (€21.1m) and operational and maintenance expenses (€13.4m).

The main developments in the programmes and initiatives category involved added outlays due to European Union own resources (€29.2m), state contribution (€18.3m that also features as revenue), extension of school transport network (€16.2m), social security benefits (€15m), contingency reserve (€12.9m), tax relief measures (€11.5m), medicines and surgical materials (€9.5m), cancer treatment, landscaping — Malta (both €6.8m), ex gratia payment — motor vehicles (€4.9m), childcare for all (€3.5m), solid waste management strategy (€3.4m), residential care in private homes (€3.3m) and feed-in tariff (€2.5m).

The interest component of the public debt servicing costs amounted to €94.2m in H1, some €6.7m lower than the same period in 2018.

In addition, the government’s capital expenditure registered an increase of €76.8m from the same period last year and added up to €219.5m.

The rise in outlay was due to increased outlay reported on road construction and improvements (€22.2m), EU internal security fund borders and visa (€14.6m), EU cohesion fund 2014-2020 (€14.2m), EU structural funds 2014-2020 (€13.3m), and investment incentives (€10.7m).

The government deficit of €156.2m, as reported in the Government’s Consolidated Fund by the end of June 2019, increased as compared to a deficit of €141.9 million in the same period in 2018. The main reason for the deficit is the difference between total revenue and expenditure was a higher reported increase in total expenditure in comparison to recurrent revenue.

Moreover, the government’s debt was caused by the result of an increase reported under the 62+ Malta Government Savings Bond (€98.3m) and also euro coins issued in the name of the treasury rose by €5.5m.

Finally, further decreases were recorded under Malta Government Stocks (€86.9m), Treasury Bills (€2.2m) and Foreign Loans (€0.2m). Higher holdings by government funds in Malta Government Stocks also resulted in a decrease in debt of €13.9 million.

The full report including charts and visual representation of data is available for download at the website of NSO.

The post Maltese government deficit slightly grows to €156.2m in H1 first appeared on The Malta Business Weekly.

“To this effect, all government departments have officially commenced with studies in order to cost the extent of all damages,” the government’s Department of Information said in a press statement.

Parliamentary Secretary for European Funds and Social Dialogue Aaron Farrugia contacted European Commissioners Corina Cretu and Christos Stylianides to inform them that such studies had commenced and that Malta will be formally triggering the process of tapping into the fund.

Malta was subject to a trembling storm over the weekend, especially Saturday night and early Sunday morning. The storm uprooted trees, tore down utility cables, left basements flooded and damaged vehicles and kiosks near the shoreline, leaving substantial damage in buildings as well.

Gale-force and severe Gale-force winds battered all over the island, in places exceeding 100 km/h in strength, according to weather and news reports.

Due to the highly unfavourable weather conditions, Virtu Ferries connecting Malta to Sicily cancelled routes for 24 and 25 February, and added extra services as of 26 February.

The post Post-storm Malta turns to EC for financial support first appeared on The Malta Business Weekly.