By the end of January 2022, the Government’s Consolidated Fund reported a deficit of €66.2 million, the NSO said Friday.
In January 2022, Recurrent Revenue amounted to €352.1 million, 19.7 per cent higher than the €294.0 million reported a year earlier.
The largest increase was recorded under Grants (€26.5 million), Licences, Taxes and Fines (€15.6 million), Income Tax (€13.5 million), Social Security (€7.2 million), Value Added Tax (€2.8 million), Fees of Office (€2.6 million) and Miscellaneous Receipts (€2.6 million). The rise in revenue was partially offset by decreases under Customs and Excise Duties (€6.2 million), Central Bank of Malta (€5.0 million) and Reimbursements (€1.6 million).
By the end of January 2022, total expenditure stood at €418.3 million, 32.4 per cent lower than the previous year. During the reference period, Recurrent Expenditure totalled €383.7 million, a decrease of €164.3 million in comparison to the €548.0 million reported by the end of January 2021. The main contributor to this drop was a €136.0 million decrease reported under Programmes and Initiatives.
Furthermore, decreases were also witnessed under Operational and Maintenance Expenses (€23.9 million) and Contributions to Government Entities (€5.1 million). This decline in expenditure was partially offset by an increase under Personal Emoluments (€0.7 million).
The decrease in the Programmes and Initiatives category was mainly the result of lower Social security benefi ts (€49.1 million) which, in turn, is explained by the double payment of retirement pensions made in January 2021 which was not repeated this year. Other decreases under Programmes and Initiatives were reported under EU own resources (€25.5 million), Medicines and surgical materials (€17.9 million), Pandemic assistance schemes (€15.0 million), Hospital concession agreements (€3.7 million), Public service obligation for public transport (€2.7 million), Housing programmes (€1.9 million), Childcare for all (€1.8 million), Extension of school transport network (€1.2 million) and Cancer treatment (€1.0 million).
The interest component of the public debt servicing costs totalled €13.2 million, an increase of €0.4 million when compared to the previous year. By the end of January 2022, Government’s capital spending amounted to €21.4 million, €36.2 million lower than 2021. This drop resulted from a reduction in expenditure towards Road construction/improvements (€13.0 million), Gozo Aquatic Centre (€2.2 million) and Direct investments (€1.2 million). The difference between total revenue and expenditure resulted in a defi cit of €66.2 million being reported in the Government’s Consolidated Fund at the end of January 2022.
Compared to the same period in 2021, there was a decrease in deficit of €258.1 million. This difference mirrors an increase in total Recurrent Revenue (€58.0 million), coupled with a decrease in total expenditure, which consists of Recurrent Expenditure (€164.3 million), Capital Expenditure (€36.2 million) and Interest (-€0.4 million). Changes in expenditure and revenue reflect developments related to COVID-19 (Table 1). At the end of January 2022, Central Government debt stood at €8,127.9 million, a €1,295.7 million rise from 2021.
Increases reported under Malta Government Stocks (€995.0 million) and Foreign Loans (€299.9 million) were the main contributors to the rise in debt. Higher debt was also reported under the 62+ Malta Government Savings Bond (€94.4 million) and Euro coins issued in the name of the Treasury (€2.8 million). This increase in debt was partially offset by a decrease in Treasury Bills (€80.5 million). Finally, lower holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €15.9 million.