By the end of February 2021, the Government’s Consolidated Fund reported a deficit of €327.7 million.
In the first two months of 2021, Government’s recurrent revenue amounted to €701 million, 1.6% than the €712.2 million reported a year earlier.
The largest decrease was recorded under Licences, Taxes and Fines (€23.1 million), followed by Customs and Excise Duties (€12.2 million), Grants (€9.8 million) and Rents (€7.5 million).
Conversely, increases in revenue were reported under Income Tax (€21.9 million), Value Added Tax (€16.0 million), Social Security (€4.0 million) and Fees of Office (€1.8 million).
By the end of February 2021, total expenditure stood at €1,028.7 million, 26.9% higher than the previous year. During the reference period, recurrent expenditure totalled €914.1 million, a rise of €200.6 million in comparison to the €713.5 million reported in 2020. The main contributor to this increase was a €123.1 million rise reported under Programmes and Initiatives. Furthermore, increases were also witnessed under Personal Emoluments (€34.3 million), Operational and Maintenance Expenses (€22.5 million) and Contribution to Government Entities (€20.8 million). The largest development in the Programmes and Initiatives category related to the Pandemic Assistance Scheme (€72 million), which includes the Covid-19 Business Assistance Programme. Other increases under Programmes and Initiatives were reported in Hospital concession agreements (€18.8 million), medicines and surgical materials (€14.9 million), EU own resources (€13.9 million) and Social security benefits (€7.1 million).
The interest component of the public debt servicing costs totalled €30.4 million, a €0.1 million rise from the same period in 2020. By the end of February 2021, Government’s capital spending amounted to €84.1 million, €17.6 million higher than 2020. The rise largely resulted from increased expenditure towards road construction and improvements (€9.5 million), acquisition of property for public purposes (€6.0 million), investment incentives (€4.5 million) and the Gozo Aquatic Centre (€3.7 million). The difference between total revenue and expenditure resulted in a deficit of €327.7 million being reported in the Government’s Consolidated Fund by the end of February 2021.
This represented an increase in deficit of €229.5 million from a deficit of €98.2 million witnessed during the same period in 2020. This difference mirrors an increase in total expenditure, consisting of recurrent expenditure (€200.6million), interest (€0.1 million) and capital expenditure (€17.6 million), in addition to a drop in recurrent revenue (€11.2 million).
Decreases in revenue and increases in expenditure refl ect developments related to Covid-19. At the end of February 2021, Central Government debt stood at €7,166.8 million, a €1,623.1 million rise from 2020. Increases reported under Malta Government Stocks (€1,073.5 million) and Treasury Bills (€328.8 million) were the main contributors to the rise in debt. Foreign Loans registered an increase of €119.9 million, largely reflecting the €120 million EU loan from the temporary Support to mitigate Unemployment Risks in an Emergency (SURE) instrument.