PRESS RELEASE BY THE MINISTRY FOR FINANCE: 2016 deficit falls by half up to October

Latest government finance data published by the National Statistics Office (NSO) shows a reduction of almost Euros 100 million in the consolidated fund deficit in the period January to October of this year. As a result the deficit for the ten-month period was halved.

The significant reduction in the deficit was supported by an increase in recurrent revenue of Euros 141.1 million or 5.1 per cent while total expenditure increased by Euros 41.4 million or 1.4 per cent.

The increase in recurrent revenue was mainly backed by higher income tax revenue (Euros 110.8 million) and social security (Euros 52.0 million), with other increases registered in revenues from licences, taxes and fines (Euros 27.9 million), VAT (Euros 13.9 million) and customs and excise duties (Euros 13.6 million). The increase in recurrent expenditure mainly reflected the increase in expenditure on programs and initiatives (Euros 66.8 million). Other expenditure increases were recorded in contributions to Government entities (Euros 37.2 million), personal emoluments (Euros 32.7 million) and operational and maintenance expenses (Euros 23.8 million).

The Ministry notes that the increase in recurrent revenue was significant despite a Euros 93.4 million decline in grants reflecting the closure of the European Union financing period 2007-2013 at the end of last year. Reductions in the EU grant component is being balanced by lower EU funded capital expenditure.

Minister for Finance Edward Scicluna: “The decline in the consolidated fund deficit shows that we are a step closer to reaching the ambitious deficit target set for this year”.

Source: Government of Malta