The government deficit in 2015 went down by €45.7 million from the €165.9 million recorded in 2014, official statistics released this morning show. 

Last year, the general government deficit was equivalent to 1.4 per cent of GDP, down from 2.1 per cent recorded in 2014.

At the end of 2015, the government nominal gross consolidated debt amounted
to €5,621.9 million, an increase of €200.8 million over 2014, while the debt-to-GDP ratio declined to 64 per cent from 67 per cent in 2014.

The National Statistics Office said the major positive adjustments included the 'Other accounts' receivable and payable (€108.5 million) and the treasury clearance fund (€55.5 million).

Conversely, the main negative adjustments were the Equity injection to the national air carrier (€43 million), the difference between interest paid and accrued (€7.9 million) and the Time-adjusted cash transactions (€3.8 million).

With regards to general government debt, data was revised marginally for 2013 (+€1.1 million), 2014 (-€0.7 million) and 2015 (+€1.3 million).

In 2015, a positive Stock Flow Adjustment of 0.9 per cent of GDP was recorded. This means that the debt increased more than implied by the deficit of 1.4 per cent, suggesting that changes in government debt are also attributable to other elements.

This rise in debt was mainly the result of higher other accounts receivable and payable, particularly on account of higher EU funds receivable and holdings of currency and deposits. On the other hand, this increase was partially outweighed by lower loans and equity and other adjustments.