The gap between government spending and income was reduced by more than €350 million in the first half of 2022, but the state’s balance sheet remained in the red.

Malta’s national deficit topped €460 million by the end of June, government statistics indicated. That figure marks a €360 million improvement over the figure a year earlier.

The national debt stood at €8.4 billion at the end of June, a €616.1 million rise from 2021. The increase reported under Malta government stocks (€494.1 million) was the main contributor to the rise in debt. 

Taxpayers paid €85.7 million in interest to service the national debt, a decrease of €4.9 million when compared to the previous year.

Recurrent government revenue was up sharply by 17.2% when compared to the first half of 2021, topping €2.5 billion. The largest increase was recorded under income tax (€142.6 million), followed by Value Added Tax (€125.3 million).

The rise in revenue was partially offset by decreases, the highest being under fees of office (€18.2 million).

By the end of June, total expenditure stood at a hair over €3 billion, 0.5% higher than in the previous year.

Recurrent expenditure totalled €2.67 billion, an increase of €18.4 million in comparison to the €2.65 billion reported in the first six months of 2021. The main contributor was a €43.3 million increase reported under programmes and initiatives.

By the end of June, government capital spending amounted to €270.9 million, €2.5 million higher than in 2021. The difference between total revenue and expenditure resulted in a deficit of €462.6 million being reported in the government’s consolidated fund at the end of June.