The government's fiscal deficit rose in the first quarter of this year, despite revenue growth, official data published on Tuesday shows. 

The National Statistics Office said the deficit reached €402.1 million from €365.2 million in the first three months of last year.

During the period January to March 2022, total revenue stood at €1,290 million, an increase of €141.4 million compared to the corresponding quarter in 2021.

Almost all components of government revenue recorded an increase, with income tax registering an increase of €86.1 million over the same period in 2021. This was followed by taxes on production and imports (€63.8 million), market output (€31.9 million), social contributions (€20.3 million), and current transfers (€0.7 million). In contrast, capital transfers and property income decreased by €54.8 million and €6.6 million, respectively.

Total expenditure in the first quarter of 2022 amounted to €1,692 million, an increase of €178.2 million over the corresponding quarter in 2021. The largest increase was recorded in social benefits (€71.8 million).

Compensation of employees reached €5.2 million and subsidies €2 million. These increases were partially offset by decreases in gross capital formation (€3.5 million) and property income payable (€3.1 million).

Government debt at 57.6% of GDP

At the end of March, general government debt stood at €8,672.2 million, or 57.6 per cent of Gross Domestic Product. This equates to an increase of €1,175.0 million over the corresponding quarter in 2021.

Currency and deposits stood at €567.3 million, an increase of €98 million over March 2021. 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 €376.7 million.

Long-term debt securities and Long-term loans increased by €863.2 million and €186 million, respectively. Short-term debt securities increased by €27.2 million, while short-term loans increased by €0.5 million.

Local government debt stood at €2.3 million. General government guaranteed debt amounted to €1,151.3 million at the end of March 2022, equivalent to 8.0 per cent of GDP.  

Read the NSO statement in full by clicking the pdf below.