Over €120 million deficit recorded in Q2 2022

Friday, 21 October 2022, 11:40 Last update: about 3 years ago

In the second quarter of 2022, the General Government recorded a deficit of €120.8 million, the National Statistics Office said.

At the end of June, General Government debt stood at €8,599.1 million, or 55.1% of Gross Domestic Product . This equates to an increase of €577.2 million over the corresponding quarter in 2021.

During the period April to June 2022, total revenue stood at €1,496.9 million, an increase of €117.8 million when compared to the same quarter in 2021. Almost all components of General Government revenue recorded an increase, with taxes on production and imports registering an increase of €60 million over the same period in 2021. This was followed by net social contributions receivable (€26.9 million), capital transfers receivable (€14 million), property income receivable (€13.9 million), current taxes on income and wealth (€13 million) and current transfers receivable (€0.9 million).

In contrast, Market output decreased by €11.0 million. Total expenditure in the second quarter of 2022 amounted to €1,617.7 million, an increase of €19.6 million over the corresponding quarter in 2021. The largest increase was recorded in intermediate consumption (€96.7 million), followed by compensation of employees (€15.5 million) and capital transfers payable (€5.6 million). These increases were partially offset by decreases in social benefits and social transfers in kind (€39.9 million), current transfers payable (€30 million), subsidies payable (€21 million), gross capital formation (€4.5 million), property income payable (€2.3 million) and current taxes on income and wealth (€0.5 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 second quarter of 2022, these adjustments brought about an increase of €29.4 million to the Consolidated Fund deficit.

Government debt

At the end of June, General Government debt stood at €8,599.1 million, or 55.1% of Gross Domestic Product . This equates to an increase of €577.2 million over the corresponding quarter in 2021, largely reflected in Central Government Debt, which amounted to €8,597.0 million. Currency and deposits stood at €567.2 million, an increase of €98.5 million over June of 2021. 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 €471.8 million. Long-term and Short-term debt securities increased by €409.2 million and €73.4 million, respectively. Long-term loans increased by €6.7 million, while Short-term loans decreased by €10.4 million.

Local Government debt stood at €2.1 million. General Government guaranteed debt amounted to €1,178.2 million at the end of June 2022, equivalent to 7.5% of GDP. There was a decrease of €8.7 million when compared to the second quarter of 2021, the NSO said.