The government’s consolidated fund reported a deficit of €1,051.8 million between January and July.
The National Statistics Office said that by the end of July, recurrent revenue totalled €2,106.1 million - a 20.2% drop from the €2,638.6 million reported in revenue between January and July 2019.
Income tax exhibited the largest decrease at €206.7 million.
Between January and July 2020, total expenditure amounted to €3,158 million, 14.2% higher than the corresponding period in 2019.
During the period under review, recurrent expenditure totalled €2,573.2 million, a €200.1 million increase from the €2,373.1 million reported in 2019.
The main contributor to this increase was a €112.9 million rise reported under programmes and initiatives.
The rise in expenditure was partially offset by a reported decrease in social security state contributions (€26.6 million, also reported as revenue).
The interest component of the public debt servicing costs totalled €106.6 million, a €2.5 million drop from the same period in 2019.
By the end of July, government’s capital spending amounted to €478.2 million, a rise of €195.8 million from 2019, largely due to additional spending towards investment incentives (€193.1 million), which amounted to €217 million, including €209 million spent in relation to the COVID-19 wage supplement.
Deficit figures
The difference between total revenue and expenditure resulted in a deficit of €1,051.8 million being reported in the government’s consolidated fund by the end of July.
This represented an increase of €925.9 million when compared to the deficit of €126 million witnessed during the same period in 2019.
This difference mirrors an increase in total expenditure, consisting of recurrent expenditure (€200.1 million), interest (-€2.5 million) and capital expenditure (€195.8 million), in addition to a drop in recurrent revenue (€532.5 million).
Decreases in revenue and increases in expenditure reflect developments related to COVID-19.
By the end of July, central government debt stood at €6,624.2 million - a €1,173 million rise from the previous year.
Increases reported under Malta Government Stocks (€587.3 million) and Treasury Bills (€497.2 million) were the main reasons behind the rise in debt.
Higher debt was also reported under the 62+ Malta Government Savings Bond (€91.6 million) and euro coins issued in the name of the Treasury (€3.7 million).
Lower debt was registered under foreign loans (€0.1 million). Higher holdings by government funds in Malta Government Stocks also resulted in a decrease in debt of €6.7 million.