Government debt up 7.8%, revenue up 3.4%

Government debt outstanding at the end of June had increased by 7.8 per cent according to provisional statistics released by the Central Bank of Malta through the National Statistics Office yesterday. Government debt at the close of this year’s first half had stood at Lm1,049.6 million, up by Lm75.5 million from the Lm974.2 million registered at the end of June last year.

Ordinary revenue over this year’s first six months had accounted for 43.3 per cent of this year’s budgetary forecast.

Meanwhile, Malta’s structural deficit, the shortfall between ordinary revenue and total expenditure, at the close of this year’s second quarter amounted to Lm78.5 million, up substantially from a shortfall of Lm53.9 million recorded at the same point of reference last year.

While ordinary revenue had increased by 3.4 per cent to Lm318.6 million over the period, an increase in total expenditure of 9.2 per cent to Lm402.7 million played a major role in boosting the structural deficit.

The rise in government revenue was mainly due to higher income resulting from licences, taxes and fines – mainly through the receipt of oil rental fees and duty on documents – while income and consumption tax this year had increased by Lm2.3 million and Lm0.7 million respectively. Revenue from social security contributions declined by Lm0.5 million, or 0.7 per cent.

Recurrent expenditure, meanwhile, had increased by 10.3 per cent and reached Lm315.6 million.

Read full report