Malta's 2022 deficit was lower than in 2021, but remained among EU's highest

The general government registered a deficit of €981.1 million in 2022, equivalent to 5.8% of the gross domestic product, the National Statistics Office said.

The NSO also said that the general government debt amounted to €9,003.4 million or 53.4% of GDP.

General Government balance and debt position

The NSO said that the €981.1 million deficit was an improvement of €194.7 million over the deficit recorded in the previous year.

According to Eurostat, this was the fourth-highest deficit in the European Union. Higher deficits were recorded by Italy, Hungary and Romania.

NSO infographic

When comparing 2022 to 2021, total revenue increased by €493.8 million, while total expenditure increased by €299.1 million.

When measured as a percentage of GDP, the balance was equivalent to a deficit of 5.8%, an improvement of two percentage points when compared to a deficit of 7.8% registered in 2021.

General government debt increased by €739.5 million over 2021 with the debt-to-GDP ratio down to 53.4% from 55.1 per cent in 2021.

2022 data

To arrive at the negative balance for 2022 of €981.1 million, adjustments were made to the balance of the consolidated fund, which registered a deficit of €900.3 million, an improvement of €332.2 million over the deficit recorded in 2021, the office said.

It said the adjustments were necessary to shift from the fund into an accruals-based exercise compiled in line with the established methodology. The adjustments also take into consideration the extra-budgetary units.

Reporting and updates

On March 30, Malta submitted the government deficit and debt levels for the years 2019-2022, as part of the excessive deficit procedure notification. When compared to the previous submission of September 30, the balance of the general government was revised for 2019, 2020 and 2021.

The main revision was recorded in 2021, resulting in an increase in the deficit of €22.3 million.

Quarterly accounts for general government: Q4/2022

The NSO said that in the fourth quarter of 2022, the general government recorded a deficit of €323.9 million.

Between October to December 2022, total revenue stood at €1,641.1 million, an increase of €73.6 million when compared to the corresponding quarter in 2021.

Almost all components of general government revenue recorded an increase, with current taxes on income and wealth registering an increase of €80.2 million over the same period in 2021.

Decreases were recorded in net social contributions receivable (€23.4 million), market output (€20.8 million) and property income receivable (€8.4 million).

Total expenditure in the fourth quarter of 2022 amounted to €1,965 million, an increase of €124.8 million over the corresponding quarter in 2021.

Adjustments to the government’s consolidated fund data to shift to accrual-based accounts brought about a decrease of €73.5 million to the consolidated fund deficit in the fourth quarter of 2022.

Quarterly financial accounts

In relation to financial transactions in assets, during the fourth quarter, long-term debt securities and equity and investment fund shares increased by €65.7 million and €17.3 million respectively, while other accounts receivable increased by €21.3 million.

Currency and deposits and long-term loans registered a decrease of €240.8 million and €2.8 million, respectively.