The government’s consolidated fund reported a deficit of €753.2 million at the end of August, €333 million lower compared to the previous year, according to the National Statistics Office.

The NSO said recurrent revenue in the first eight months of 2021 amounted to €3,221.5 million, 27.6% more than the €2,524.8 million reported a year earlier.

The largest increase was recorded under income tax (€331.4 million).

By the end of August, total expenditure stood at €3,974.7 million, 10.1% more than the previous year.

Recurrent Expenditure totalled €3,474.3 million, a rise of €509.2 million over the €2,965.1 million reported by the end of August 2020. The main contributor to this increase was a €433.2 million rise reported under programmes and initiatives. 

The largest development in this category was related to the COVID-19 pandemic assistance scheme (€257.4 million), which includes the COVID-19 business assistance programme. 

The interest component of the public debt servicing costs totalled €123.1 million, an increase of €1.8 million when compared to the previous year.

Government’s capital spending amounted to €377.3 million, €147.3 million lower than in 2020. The drop largely resulted from the reclassification of the COVID-19 business assistance programme (€229 million), which in December 2020 featured under capital expenditure. 

This decline outweighed an increase of €81.7 million reported in other capital projects.

Central Government debt stood at €7,684.5 million, a €1,085.4 million rise from 2020.

Increases reported under Malta Government Stocks (€698.6 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 €420.0 million EU loan from the temporary support to mitigate unemployment risks in an emergency (SURE) instrument.

Higher debt was also reported under euro coins issued in the name of the treasury (€1 million). This rise in debt was partly offset by a decrease in treasury bills (€26 million) and the 62+ Malta Government Savings Bond (€5.1 million). 

Lower holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €2.9 million.

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