The government recorded a deficit of €245.5 million in the first quarter of this year and the national debt rose by €603.8 million to €9,255.1 million, or 53.6%  of Gross Domestic Product (GDP) when compared to a year ago, official data issued on Wednesday shows. 

The National Statistics Office said that between January and March 2023, total revenue stood at €1,397.5 million, an increase of €89.9 million from the corresponding quarter in 2022. This was mainly brought about by increases in revenue from tax on production and imports (€43.6 million), taxes on income and wealth (€20.6 million) and net social contributions (€11.9 million).

Government revenue and expenditure.

Total expenditure in the first quarter of 2023 amounted to €1,643.0 million, a decrease of €37.9 million over the corresponding quarter in 2022. The largest decrease was recorded in current transfers payable (€49.1 million), followed by gross capital formation (€27.1) and subsidies payable (€17.1 million).  This was partly offset by increases in spending on social benefits and social transfers in kind (€27.0 million), compensation of employees (€21.1 million) and intermediate consumption (€8.1 million).

Adjustments were made to the government’s consolidated fund data to shift to accrual-based accounts. In the first quarter of 2023, these adjustments brought about an increase of €109.8 million to the consolidated fund deficit. 

Quarterly debt 

At the end of March, government debt stood at €9,255.1 million, or 53.6 per cent of Gross Domestic Product (GDP). This equated to an increase of €603.8 million over the corresponding quarter in 2022, largely reflected in Central Government Debt, which amounted to €9,253.1 million.

General government debt.

Currency and deposits stood at €472.4 million, a decrease of €94.8 million when compared to the figure recorded in March 2022. This included euro coins issued in the name of the Treasury, considered a liability of Central Government, and the 62+ Malta Government Savings Bond, the latter amounting to €373.7 million.

Long-term debt securities and long-term loans increased by €711.7 million and €13.7 million, respectively.  This was partly offset by short-debt term securities, which declined by €26.8 million, while short-term loans did not record any changes. Local government debt stood at €2.1 million. 

Correction: An earlier version of this article said that the debt rose by €603.8 million in the first three months of the year when the increase is over a year - from the same period last year.