Government revenue in the first 10 months of the year recovered to pre-pandemic levels, following a significant dip in 2020, according to national data.

The National Statistics Office said on Friday that between January and October of this year, the country's recurrent revenue reached €4,017.5 million - 21.1 per cent higher than the €3,318.3 million reported in 2020.

This compares to €3,940.1 in 2019, just before the pandemic devastated the whole world. 

The largest increase, when compared to 2020, was recorded under income tax (€334.2 million), followed by VAT (€182.4 million) and social security contributions (€138.8 million).

In the first 10 months of 2019, income tax recurrent revenue stood at €1,358.7 million, slightly less than 2021's €1,471.1million

According to the data, by the end of October 2021, total expenditure stood at €5,082.5 million - 11.4 per cent higher than the previous year.

This is nearly 30 per cent higher than the  €3,930 million spent in the first 10 months of 2019.

Recurrent expenditure up by €730 million 

NSO noted that between January and October of 2021, recurrent expenditure totalled €4,424.3 million - a rise of €730 million over the €3,694.4 million reported by the end of October 2020.

The main contributor to this increase was a €603.8million rise on programmes and initiatives. Increases were also witnessed under personal emoluments (€91.2 million), contributions to government entities (€30.4 million) and operational and maintenance expenses (€4.5 million).

The largest development in the programmes and initiatives category was linked to the pandemic assistance scheme (€300.4 million), which includes the COVID-19 Business Assistance Programme.

€46 million more on hospital agreements, €17.9 million on SVPR contract

Other increases within the same category were linked to EU resources (€77.6million), hospital concession agreements (€46 million), social security benefits (€45.5 million) St Vincent de PaulResidence service contract (€17.9 million), waiting lists for medical services (€11.0 million), Church schools (€10.3 million) and the extension of school transport network (€8.3 million).

The interest component of the public debt servicing costs totalled €153.9 million - an increase of €2.4 million when compared to the previous year.

 €1,064.9 million deficit in Government’s Consolidated Fund 

The difference between the total revenue and expenditure resulted in a deficit of €1,064.9 million in the Government’s Consolidated Fund at the end of October 2021.

Compared to the same period in 2020, there was a decrease in deficit of €177.3 million.

At the end of October, Central Government debt stood at €7,966.7 million - a €1,462.6 million rise from 2020.

Increases reported under Malta Government Stocks (€905 million) and Foreign Loans (€419.9 million) were the main contributors to the rise in debt.

The latter increase in debt was a result of the €420 million EU loan from the temporary Support to mitigate Unemployment Risks in an Emergency (SURE) instrument.

Higher debt was also reported under the 62+ Malta Government Savings Bond (€94.4 million), Treasury Bills (€42.5million) and Euro coins issued in the name of the Treasury (€1.9 million).

Finally, lower holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €1.1 million.

Independent journalism costs money. Support Times of Malta for the price of a coffee.

Support Us