General Government recorded a deficit of €245.5 million in Q1

During the period January to March 2023, total government revenue stood at €1,397.5 million, an increase of €89.9 million when compared to the corresponding quarter in 2022.

This was mainly brought about by increases in Taxes on production and imports (€43.6 million), Current taxes on income and wealth (€20.6 million) and Net social contributions receivable (€11.9 million).

Total expenditure in the first quarter of 2023 amounted to €1,643.0 million, a decrease of €37.9 million over the corresponding quarter in 2022.

The largest decrease was recorded in Current transfers payable (€49.1 million), followed by Gross capital formation (€27.1) and Subsidies payable (€17.1 million). 

This was partly offset by increases in Social benefits and social transfers in kind (€27.0 million), Compensation of employees (€21.1 million) and Intermediate consumption (€8.1 million).

Adjustments were made to the Government’s Consolidated Fund data to shift to accrual-based accounts and thus comply with the requirements of ESA 2010.

In the first quarter of 2023, these adjustments brought about an increase of €109.8 million to the Consolidated Fund deficit.

Quarterly financial accounts

In relation to financial transactions in assets, during the first quarter, Currency and deposits and Equity and investment fund shares increased by €11.1 million and €6.2 million, respectively. On the other hand, Other accounts receivable and Long-term loans registered a decrease of €47.6 million and €23.7 million, respectively.

Considering the financial transactions in liabilities, the highest increase was recorded in Long-term debt securities (€347.9 million), followed by Long-term loans (€1.1 million).

In contrast, decreases were registered in Short-term debt securities (€94.7 million), Other accounts payable (€32.5 million) and Currency and deposits (€1.6 million).

Quarterly debt

At the end of March, General Government debt stood at €9,255.1 million, or 53.6 per cent of Gross Domestic Product (GDP)1.

This equates to an increase of €603.8 million over the corresponding quarter in 2022, largely reflected in Central Government Debt, which amounted to €9,253.1 million. Currency and deposits stood at €472.4 million, a decrease of €94.8 million when compared to the figure recorded in March 2022.

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 €373.7 million.

Long-term debt securities and Long-term loans increased by €711.7 million and €13.7 million, respectively.

This was partly offset by Short-debt term securities, which declined by €26.8 million, while Short-term loans did not record any changes. Local Government debt stood at €2.1 million.

General Government guaranteed debt amounted to €1,158.5 million at the end of March 2023, equivalent to 6.7 per cent of GDP1.

There was a decrease of €6.0 million when compared to the first quarter of 2022.