By the end of April 2022, the Government’s Consolidated Fund reported a deficit of €388.7 million

In the first four months of 2022, recurrent revenue amounted to €1,595.3 million, 16.5% higher than the €1,369.7 million reported a year earlier.

The largest increase was recorded under Income Tax (€82.4 million), followed by Value Added Tax (€53 million), Grants (€42.3 million), Social Security (€25.3 million), Customs and Excise Duties (€14.7 million), Licences, Taxes and Fines (€7.4 million), Central Bank of Malta (€7.2 million), Dividends on Investment (€3.1 million), Rents (€2.9 million) and Reimbursements (€0.8 million).

But by the end of April 2022, total expenditure stood at €1,983.9 million, 1.6% higher than the previous year. During the reference period, recurrent expenditure totalled €1,769.7 million, an increase of €35.9 million in comparison to the €1,733.8 million reported by the end of April 2021.

The main contributor to this increase was a €46.2 million increase reported under Programmes and Initiatives. Furthermore, an increase was also witnessed under Contributions to Government Entities (€3.3 million). This rise in expenditure outweighed decreases under Operational and Maintenance Expenses (€10.9 million) and Personal Emoluments (€2.6 million).

The main developments in the Programmes and Initiatives category involved added outlays towards economic stimulus payments (€48.1 million), tax relief measures (€25.7 million), assistance to help the elderly live independently (€13.7 million), social security benefits (€11.4 million), residential care in private homes (€7.2 million) and gas stabilisation fund (€5.1 million). This rise in Programmes and Initiatives was partly offset by decreases under the pandemic assistance schemes (€46.9 million) and hospital concession agreements (€20.7 million).

The interest component of the public debt servicing costs totalled €54.7 million, a decrease of €4.9 million when compared to the previous year.

By the end of April 2022, Government’s capital spending amounted to €159.5 million, €1 million higher than 2021. This increase resulted from higher expenditure towards investment incentives (€3.5 million), property, plant and equipment (€3.2 million) and Ta’ Qali National Park (€3 million). This rise in capital expenditure was partially offset by decreases under acquisition of property for public purposes (€4.9 million) and Gozo Aquatic Centre (€3.7 million).

The difference between total revenue and expenditure resulted in a deficit of €388.7 million being reported in the Government’s Consolidated Fund at the end of April 2022.

Compared to the same period in 2021, there was a decrease in deficit of €193.5 million. This difference mirrors an increase in total recurrent revenue (€225.6 million), partly offset by a rise in total expenditure, which consists of recurrent expenditure (€35.9 million), capital expenditure (€1.0 million) and interest (-€4.9 million).

At the end of April 2022, Central Government debt stood at €8,532.4 million, a €1,174.6 million rise from 2021.