The Church in Malta “did better than expected” in the 2023 financial year and narrowed its deficit to just over €325,000 from €7 million in the previous year.

Church officials said on Tuesday that the improved financial situation was due to several factors that included more income, controlled expenditure and a record €7.22 million in APS bank dividends.

Speaking at a press conference to present the financial report of the Archdiocese of Malta for 2023, administrative secretary Michael Pace Ross said that during 2023 the archdiocese  -  which encompasses around 120 entities and employs 1,369 people -  operated on an income of €59.9 million while the expenditure stood at €60.4 million.

Despite the shortfall of some €325,000, the Church increased subsidies to its entities by 33%, with the bulk of funds directed towards children’s homes - where subsidies increased by €180,000 to reach €406,000 last year.

In 2023 the homes were at full capacity hosting 41 children. Investments were made in the homes to ensure that the children felt they lived in a home and not an institute, he said.

“The children are our future and, if we don’t look after them, no one will," Pace Ross said.

Another cost, he said, was the staff, with more professionals needing to be engaged as nuns retired.

Inheritances left to Church double 

Revenue increased to €59.9m in 2023 compared to €52.6m in 2022. Income from collections received by parishes went up by 20% to reach €3m. However, revenue from donations decreased from €6.4m to €5.8m.

Michael Pace Ross outlined the financial results. Photo: Jonathan Borg

There was a doubling in inheritances, mostly through Dar tal-Providenza, that spiralled from €452,821 to €909,699. Income from property rental and sale of property rose by €2.05m to reach €1.8m for rental and €3.2m for sale. Investment income increased to €10.23m and included €7.22m in APS gross dividends 

The Mdina Cathedral Museum and Mosta Basilica registered a 55% and 21% increase respectively in visitors with generated income increasing by €730,000.

Increased outlay on staff costs

Expenditure by the archdiocese increased by €6.04m compared to the previous year. Salary costs accounted for 61% amounting to €36.8m up from €33.6m in 2022.

This went to pay the salaries of 1,067 full-timers and 302 part-timers at the Curia, priests, children's homes, the homes for the elderly and persons with disability; the Archbishop’s Seminary and Sacred Heart College; monasteries and sextons.

Operational and maintenance costs, including the conservation and restoration of ecclesiastical heritage, increased by €2.52m reaching €18.8m while tax amounted to €2.5m.

Asked why the archdiocese did not intervene to fund needed restoration works at Paola parish church, Pace Ross explained that the curia usually helped parishes with funding, loans and subsidies.

In this case the €400,000 fee was too large to fork out at one go so the proposed café was to create a steady income stream. Once the government stepped in, it was a win-win situation.

The Paola church received subsidies from government. Photo: Chris Sant Fournier

He added that church continued to subsidise entities with the highest increase going to children’s homes. The Church, he said, has been making every effort to help families and individuals seeking assistance, and various initiatives were underway aimed at furthering the Church’s mission.

“Through the LOOP Parish Diaconia initiative, 870 people received food and 380 were the beneficiaries of clothing. Last year, the Church also opened Il-Kċina ta’ Marta at the Archbishop’s Seminary in Tal-Virtù - supported by a team of dedicated volunteers and the Alfred Mizzi Foundation. It provides more than 1,200 meals a week to those in need,” he said.

In addition to this, Maltese parishes received over 1,300 requests to provide individuals and families with food hampers, medicines and other necessities. Some of these requests were one-time needs, while others are ongoing.

The Archdiocese of Malta also assisted survivors of earthquakes in Turkey and Syria, hosted foreign priests at Casa Fratelli Tutti, and facilitated the participation of 565 youths at the World Youth Day in Lisbon.

Last month, the archdiocese also donated Dar Saura in Rabat - a former residence for the elderly valued at €25m - to The Malta Trust Foundation, which will transform the property into a music and arts centre for children with disabilities.