Malta records €55.2 million surplus in Q2 2024 as Government debt shrinks

Malta’s Government recorded a budget surplus of €55.2 million during the second quarter of 2024, according to new figures from the National Statistics Office (NSO).

This positive fiscal result comes as the Government’s guaranteed debt decreased by €118.1 million compared to the same period in 2023.

Total Government revenue for the April to June 2024 period stood at €1,984.6 million, reflecting a significant increase of €233.7 million over the previous year. The boost in revenue was primarily driven by higher taxes on income and wealth, which contributed an additional €82.4 million, along with €65 million more from taxes on production and imports. Other contributing factors included an increase of €29.6 million in capital transfers receivable and a €29.4 million rise in market output, slightly offset by a €2.5 million decrease in current transfers receivable.

On the expenditure side, the Government spent €1.9 billion during Q2 2024, marking an increase of €160.8 million compared to the same period in 2023. The largest rise in expenditure was seen in current transfers payable, which went up by €140.5 million, followed by social benefits and social transfers in kind, which grew by €42.5 million. Employee compensation also increased by €31.7 million, with intermediate consumption up by €17.4 million. Conversely, subsidies payable saw a substantial decrease of €75.7 million, and gross capital formation dropped by €14.4 million.

In line with the requirements of the European System of Accounts (ESA 2010), the Government made adjustments to its consolidated fund data, transitioning to accrual-based accounting. These adjustments led to a €186.6 million reduction in the consolidated fund deficit, bringing it to €131.4 million for Q2 2024.

By the end of June 2024, Malta’s general Government debt stood at €10 billion, an increase of €912 million compared to the same quarter the previous year.

The country also experienced a drop in currency and deposits, which fell by €22 million year-on-year to €433 million.

However, Government-guaranteed debt saw a positive shift, decreasing by €118.1 million to €1,046.1 million, equivalent to 4.8 per cent of Malta’s GDP.