A deficit of €565.8 million was reported by the government’s consolidated fund by the end of March. This was €253.3 million more than in the same period in 2020, the National Statistics Office said.

The difference, the NSO said, mirrors an increase in total expenditure: €276.8 million in recurrent expenditure,  a €1.3 million drop in interest and a €34.6 million decline in capital expenditure. There was also a drop of €12.4 million in recurrent revenue.

The NSO said that decreases in revenue and increases in expenditure reflected developments related to COVID-19.

It said that recurrent revenue in this year’s first quarter amounted to €913.2 million, 1.3% less than the €925.6 million reported a year earlier.

The largest decrease was recorded under licences, taxes and fines (€24.4 million), followed by grants (€19.9 million) and social security (€18.8 million).

The drop in revenue was marginally offset by increases reported including under income tax (€41.6 million) and value added tax (€19.3 million).

Total expenditure in the first quarter stood at €1,479 million, 19.5% higher than the previous year.

Recurrent expenditure totalled €1,312.1 million, €276.8 million more than the €1,035.3 million reported in the first quarter of 2020.

The main contributor to this increase was a €187.7 million rise under programmes and initiatives. Increases were also witnessed under
personal emoluments (€56.2 million), operational and maintenance expenses (€24.5 million) and contributions to government entities (€8.3 million).

The largest development in the programmes and initiatives category related to the COVID-19 assistance scheme (€107 million), which includes the COVID-19 Business Assistance Programme.

The interest component of the public debt servicing costs totalled €44.4 million, €1.3 million less than in the same period the previous year.

By the end of March, government’s capital spending amounted to €122.5 million, €34.6 million lower than in 2020. The drop largely resulted from the reclassification of the COVID-19 Business Assistance Programme (€50 million), which featured under capital expenditure between March and December 2020 but is now classified under recurrent expenditure.

Debt

At the end of March, central government debt stood at €7,295.5 million, €1,745.2 million more than in 2020.

Increases reported under Malta government stocks (€1,073.7 million) and treasury bills (€325.8 million) were the main contributors to the rise in debt. Foreign Loans registered an increase of €242.9 million, largely reflecting the €243 million EU loan from the temporary support to mitigate unemployment risks in an emergency (SURE) instrument. 

Higher debt was also reported under the 62+ Malta government savings bond (€90.4 million) and euro coins issued in the name of the Treasury (€0.3 million).

Lower holdings by government funds in Malta government stocks resulted in an increase in debt of €12.2 million.