The government’s coffers received a welcome boost so far this year, with newly published data showing that the government’s consolidated fund reported a surplus of €41.6m between January and March.

The government’s consolidated fund essentially functions as its bank account, with the taxes collected deposited into it and being used for the government’s general spending.

This year’s figures are a complete turnaround from last year, when a deficit of €135m was reported during the same period, and, especially, from 2022 when the deficit was over €371m. The deficit had ballooned to almost €530m in 2021.

This is the first time in over 20 years that the fund recorded a surplus during the first quarter.

Most of this is down to a sharp rise in government revenue, with €186m more in income tax collected so far this year compared to last. Likewise, the government collected €57m more in VAT and almost €47m in social security contributions.

In total, government revenue is up by over 15.6% this year, going from €1.4 billion last year to a little under €1.7 billion this year.

The government’s expenditure has also increased, albeit to a lesser extent. Its recurrent expenditure is up by €53m, with more money spent on programmes and initiatives, particularly programmes related to social protection and public services.

On the other hand, the government’s spending on infrastructure and physical assets dropped sharply, with its capital expenditure down by a fifth compared to last year to just over €96m.

Despite the boost to its coffers, the government’s debt has continued to grow, almost hitting €10b in March, €783m higher than it was at this point last year.

The Finance Ministry has argued that Malta’s debt remains in hand, with debt as a proportion of Malta’s GDP shrinking at a faster rate than anticipated and still below the EU’s threshold of 60%.