Government records €44.5 million deficit between July and September 2023

The Maltese Government recorded a deficit of €44.5 million during the three-month period between July and September of 2023, with expenditure outstripping revenue despite a marked increase in the latter as tax income rose.

According to fresh data published by the National Statistics Office, during the period, total revenue stood at €1.64 billion, an increase of €176.4 million when compared to the corresponding quarter in 2022. This was mainly brought about by increases in market output (€46.6 million), current taxes on income and wealth (€44.9 million), and taxes on production and imports (€41.5 million).

Total expenditure in the third quarter of 2023 amounted to €1.69 billion, an increase of €36.4 million over the corresponding quarter in 2022. The largest increase was recorded in intermediate consumption (€41.8 million), followed by social benefits and social transfers in kind (€38.7 million) and current transfers payable (€29.8 million). These increases were partially offset primarily by decreases in subsidies payable (€121.5 million).

Considering the financial transactions in liabilities, the highest increase was recorded in long-term debt securities (€578 million). In contrast, decreases were registered in short-term debt securities (€346.9 million) and Other accounts payable (€346.4 million).

At the end of September, General Government debt stood at €9,409.8 million, or 49.3 per cent of GDP. This equates to an increase of €714.9 million over the corresponding quarter in 2022, largely reflected in Central Government Debt, which amounted to €9,407.8 million.

Currency and deposits stood at €455.5 million, a decrease of €18.8 million over September of 2022. This includes 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 €353.3 million.

Long-term debt securities increased by €1,285.4 million, while short-term debt securities decreased by €560.5 million, respectively. In addition, long-term loans increased by €8.7 million, and Short-term loans recorded a €0.1 million increase. Local Government debt stood at €2 million.