A deficit of €66.2 million was reported by the government’s consolidated fund by the end of January, the National Statistics Office said.

It said recurrent revenue amounted to €352.1 million, 19.7% more than the €294 million reported a year earlier. Total expenditure stood at €418.3 million, 32.4% lower than the previous year.

During the reference period, recurrent expenditure totalled €383.7 million, a drop of €164.3 million compared to the €548 million reported by the end of January 2021.

The main contributor to this drop was a €136 million decrease reported under programmes and initiatives. The decline in expenditure was partially offset by an increase under personal emoluments (€0.7 million).

The decrease in the programmes and initiatives category was mainly the result of lower social security benefits (€49.1 million) which, in turn, is explained by the double payment of retirement pensions made in January 2021, which was not repeated this year. 

The interest component of the public debt servicing costs totalled €13.2 million, an increase of €0.4 million when compared to the previous year.

By the end of January, government's capital spending amounted to €21.4 million, €36.2 million lower than 2021. 

The difference between total revenue and expenditure resulted in a deficit of €66.2 million being reported in the government’s consolidated fund at the end of January 2022.

Compared to the same period in 2021, there was a decrease in deficit of €258.1 million. This difference mirrors an increase in total recurrent revenue (€58 million), coupled with a decrease in total expenditure, which consists of recurrent expenditure (€164.3 million), capital expenditure (€36.2 million) and interest (-€0.4 million).

Changes in expenditure and revenue reflect developments related to COVID-19.

At the end of January, central government debt stood at €8,127.9 million, a €1,295.7 million rise from 2021.

Increases reported under Malta Government Stocks (€995 million) and foreign loans (€299.9 million) were the main contributors to the rise in debt.

Higher debt was also reported under the 62+ Malta Government Savings Bond (€94.4 million) and euro coins issued in the name of the treasury (€2.8 million).

This increase in debt was partially offset by a decrease in treasury bills (€80.5 million). 

Lower holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €15.9 million.