Govt’s consolidated fund registers €673.4 million deficit

dawl-Kastilja

Between January and May 2020, recurrent revenue fell by €317.7 million and totalled €1,508.9 million, was 17.4% lower than the €1,826.6 million reported in revenue by the end of May 2019.

According to the data published by the National Statistics Office, NSO, a €142.8 million drop in Income Tax proved to be the main catalyst behind the decline in revenue. Additional drops were exhibited under;

  • Value Added Tax – €70.7 million
  • Social Security – €48.9 million
  • Licences, Taxes and Fines – €39.1 million
  • Customs and Excise Duties – €30.0 million
  • Grants – €22.8 million
  • Rents – €6.3 million
  • Reimbursements – €4.2 million

Conversely, higher revenue was witnessed under Miscellaneous Receipts €30.7 million, Fees of Office, €14.6 million and Dividends on Investment, €1.8 million.

By the end of May 2020, total expenditure amounted to €2,182.3 million, a 15.2% increase from the corresponding period in 2019.

Recurrent expenditure totalled €1,798.4 million, €161.8 million higher than the €1,636.6 million recorded during the first five months of 2019.

The main contributor to this increase was a €111.2 million rise reported under Programmes and Initiatives.

The data shows that rises in outlay were also registered by Contributions to Government Entities, €51.7 million and Personal Emoluments, €8.6 million, while Operational and Maintenance Expenses declined by €9.7 million.

The main developments in the Programmes and Initiatives category involved added outlays towards social security benefits, €84.7 million, of which €10.0 million was spent on COVID-19 social benefits, medicines and surgical materials, €17.9 million, church schools, extension of the school transport network, both €6.9 million, solid waste management strategy, €6.8 million, compensation payments, €4.7 million, public service obligation for public transport, €4.6 million, street lighting and feed-in-tariff, both €4.3 million.

The rise was partially off set by reported drops in the state contribution and the tax relief measure.

Government’s capital spending amounted to €310.2 million by the end of May, a rise of €129.2 million from 2019, largely due to additional spending towards investment incentives which amounted to €123.0 million, including €115.0 million spent in relation to the COVID-19 Wage Supplement.

On the other hand, there was a €9.5 million drop reported under structural funds 2014-2020.

The difference between total revenue and expenditure resulted in a deficit of €673.4 million being reported in the Government’s Consolidated Fund by the end of May 2020.

This represented an increase in deficit of €606.0 million when compared to the deficit of €67.4 million witnessed during the same period in 2019.

By the end of May 2020, Central Government debt stood at €6,388.2 million, a €897.5 million rise from May 2019. Increases reported under Treasury Bills and Malta Government Stocks were the main reasons for the rise in debt.