International ratings agency Moody’s has dedicated a special report on the surplus achieved in Malta’s public finances.

A press release issued by the Department of Information said that the article published by Moody’s was penned by three economists, entitled ‘Malta’s surprise 2016 budget surplus is credit positive’.

The statement continues to say that Moody’s initially forecasted a 0.8 per cent deficit for Malta, until Eurostat, the EU statistical body, confirmed a surplus of one per cent.

“The surplus is credit positive because it accelerates the decline in the Maltese government’s debt burden, and confirms that debt has fallen below the European Commission’s 60 per cent Maastrich threshold one year earlier than forecast,” Moody’s wrote.

The agency added that the positive results are thanks to higher tax revenue, despite the decrease in tax-rates, both because of higher business profits and an increase in household earnings.

Among reasons cited for the increase in household earnings were the increase in tourism, and the multiplier effect this has on the economy.

Moody’s also praised the highly controversial citizenship by investment scheme, “which is leading to big earnings,” the press release said. The press release quoted Moody’s as saying the citizenship by investment scheme is still at the beginning, and that it has high prospects for generating big earnings.

It noted that the government is saving 70 per cent from the citizenship-sale earnings and placing it into the National Development and Social Fund.