Government’s consolidated fund reported a surplus of €37.9 million by the end of the third quarter of 2019.

Between January and September, recurrent revenue rose by €435 million and amounted to 3,563.7 million. This represented a 13.9% increase from the €3,128.7 million reported in revenue during the corresponding period in 2018.

Reported rises in income tax (€156.7 million) and grants (€117.4 million) were the main catalysts for the increased revenue. 

Total expenditure by the end of September stood at €3,525.8 million, a 12.8% increase from the corresponding period in 2018.

Recurrent expenditure stood at €3,024.8 million, €323.7 million higher than the corresponding amount registered by the end of September 2018.

The main contributor to this increase was a €199.1 million rise reported under programmes and initiatives. 

The interest component of the public debt servicing costs amounted to €147.1 million, €11.4 million lower than the same period in 2018.

Government’s capital expenditure registered an increase of €87.7 million from the same period last year and added up to €353.9 million. The rise in outlay was due, among other factors, to increased expenditure reported on road construction and improvements (€39.4 million), cohesion funds 2014-2020 (€15.2 million), and EU Internal Security Fund - Borders and Visa (€15 million).

The difference between total revenue and expenditure resulted in a surplus of €37.9 million being reported in the Government’s consolidated fund - a €35 million rise from the surplus of €2.9 million witnessed in the same period in 2018.

The main driver in the difference was a higher reported increase in recurrent revenue (€435 million) than that in total expenditure, consisting of recurrent expenditure (€323.7 million), interest (-€11.4 million) and capital expenditure (€87.7 million).

During September, central government debt stood at €5,255.4 million, a €16.1 million rise from the same month in 2018. This was primarily the result of an increase reported under the 62+ Malta Government Savings Bond (€97.8 million).

Euro coins issued in the name of the Treasury also rose by €4.5 million. On the other hand, there were decreases recorded under Treasury Bills (€46.2 million), Malta Government Stocks (€20.2 million) and foreign loans (€0.2 million).

Higher holdings by government funds in Malta Government Stocks also resulted in a decrease in debt of €19.7 million.