​Government Finance Data: January-August 2020​

25 September 2020 | 1100 hrs | 153/2020

Between January and August 2020, the Government's Consolidated Fund reported a defi cit of €1,086.2 million.

Government Finance Data: January-August 2020

By the end of August 2020, recurrent revenue amounted to €2,524.8 million, 20.9 per cent lower than the €3,190.2 million reported in revenue up to the end of August 2019. Income Tax exhibited the largest decrease at €235.3 million. Additional drops were also witnessed under Value Added Tax (€177.3 million), Grants (€84.6 million), Customs and Excise Duties (€84.5 million), Social Security (€72.8 million), Licences, Taxes and Fines (€59.8 million), Reimbursements and Rents (both €7.7 million). In contrast, increases were reported under Fees of Office (€30.6 million), Miscellaneous Receipts (€29.9 million) and Dividends on Investment (€4.0 million).

Between January and August 2020, total expenditure amounted to €3,611.1 million, 16.3 per cent higher than the corresponding period in 2019.

During the period under review, recurrent expenditure totalled €2,965.1 million, a rise of €298.4 million when compared to the €2,666.8 million reported in 2019. The main contributor to this increase was a €135.3 million rise reported under Programmes and Initiatives. Furthermore, increases in outlay were also registered by Contributions to Government Entities (€102.4 million), Operational and Maintenance Expenses (€41.4 million) and Personal Emoluments (€19.3 million). The main developments in the Programmes and Initiatives category involved added outlays towards Social security benefi ts (€50.7 million, of which €14.5 million were spent on COVID-19 social benefi ts), Medicines and surgical materials (€45.4 million), the Economic regeneration voucher scheme (€30.9 million), Church schools (€22.5 million), Public service obligation for public transport (€10.1 million), Housing programmes (€7.0 million), Compensation payments, Extension of the school transport network (both €5.4 million) and Waiting lists for medical services (€4.1 million). The rise in expenditure was partially off set by drops reported under Social security state contribution (€28.3 million, also reported as revenue) and EU own resources (€18.2 million).

The interest component of the public debt servicing costs totalled €121.3 million, a €5.2 million decrease from the same period in 2019.

By the end of August 2020, Government's capital spending amounted to €524.6 million, a rise of €211.6 million from 2019, largely due to additional spending towards investment incentives (€213.0 million), which amounted to €237.1 million, including €229.0 million spent in relation to the COVID-19 Business Assistance. Property, plant and equipment spending also rose by €38.8 million. On the other hand, there were drops reported under Contribution towards Treasury clearance fund (€19.9 million) and in projects fi nanced by EU Internal security fund - Borders and Visa (€14.4 million) and EU Structural funds 2014-2020 (€7.2 million).

The diff erence between total revenue and expenditure resulted in a defi cit of €1,086.2 million being reported in the Government's Consolidated Fund by the end of August 2020. This represented an increase in defi cit of €1,170.1 million when compared to the surplus of €83.9 million witnessed during the same period in 2019. This difference mirrors an increase in total expenditure, consisting of recurrent expenditure (€298.4 million), interest (-€5.2 million) and capital expenditure (€211.6 million), in addition to a drop in recurrent revenue (€665.3 million) (Table 1). Decreases in revenue and increases in expenditure refl ect developments related to COVID-19.

At the end of August 2020, Central Government debt stood at €6,599.1 million, a €1,179.7 million rise from the previous year. Increases reported under Malta Government Stocks (€587.3 million) and Treasury Bills (€502.7 million) were the main reasons for the rise in debt. Higher debt was also reported under the 62+ Malta Government Savings Bond (€91.5 million) and Euro coins issued in the name of the Treasury (€2.9 million). In contrast, lower debt was registered under Foreign Loans (€0.1 million). Higher holdings by government funds in Malta Government Stocks also resulted in a decrease in debt of €4.6 million (Table 6) 

Statistics in this News Release should be interpreted in the context of the COVID-19 situation.

Compiled by: Public Finance Unit

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Table 1. Revenue/Expenditure categories: January to August by year

					Jan-Aug 2020 /
	Jan-Aug	Jan-Aug		Jan-Aug	Jan-Aug 2019
Description	2018	2019		2020	Change
					% change
			€ 000
(a) Total Recurrent Revenue	2,744,125	3,190,185		2,524,847	-665,337	-20.9
Customs and Excise Duties	204,695	214,007		129,547	-84,459
Licences, Taxes and Fines	254,329	262,101		202,300	-59,801
Income Tax	920,880	1,071,225		835,912	-235,313
Value Added Tax	557,729	656,233		478,922	-177,312
Fees of Office	52,607	53,629		84,227	30,598
Reimbursements	27,904	28,275		20,550	-7,725
Central Bank of Malta	28,000	20,000		20,000	0
Rents	22,048	27,792		20,119	-7,674
Dividends on Investment	23,333	11,385		15,410	4,025
Interest on loans made by Government	32	71		8	-63
Social Security	579,232	642,723		569,887	-72,836
Grants	51,082	168,687		84,039	-84,648
Miscellaneous Receipts	22,254	34,056		63,927	29,871
(b) Total Expenditure	2,747,244	3,106,253		3,611,062	504,810	16.3
Recurrent Expenditure	2,395,336	2,666,762		2,965,129	298,367	11.2
Personal Emoluments	541,206	585,225		604,498	19,273
Operational and Maintenance Expenses	120,676	136,717		178,110	41,393
Programmes and Initiatives	1,461,724	1,624,981		1,760,300	135,319
Contributions to Government Entities	271,730	319,840		422,222	102,382
Interest	139,124	126,487		121,329	-5,158	-4.1
Capital Expenditure	212,784	313,003		524,604	211,601	67.6
(a-b) Consolidated Fund Surplus/Deficit	-3,119	83,932		-1,086,215	-1,170,147	-1,394.2
(c) Financial Transactions
Revenue
Loans	93,527	279,713		1,044,791	765,078
Repayment of Loans	0	0		171	171
Receipts from Sale of Shares	889	889		889	0
Other extraordinary receipts	91,000	0		0	0
Expenditure
Contribution to Sinking Fund	16,659	20,025		10,025	-10,000
Equity Acquisition	63,034	10,308		26,980	16,672
Repayment of Loan	292,400	178,716		277,600	98,884
Loans	0	0		0	0

Note: Totals may not add up due to rounding.

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Table 2. Revenue/Expenditure categories in August by year

					August 2020 /
	August	August		August	August 2019
Description	2018	2019		2020	Change
					% change
			€ 000
(a) Total Recurrent Revenue	486,009	551,548		418,699	-132,848	-24.1
Customs and Excise Duties	28,277	31,136		2,994	-28,142
Licences, Taxes and Fines	34,495	32,348		28,468	-3,880
Income Tax	151,153	193,387		164,798	-28,589
Value Added Tax	124,121	162,342		100,360	-61,982
Fees of Office	6,517	5,726		11,028	5,302
Reimbursements	1,880	2,528		1,753	-775
Central Bank of Malta	0	0		0	0
Rents	3,040	1,030		2,855	1,825
Dividends on Investment	2,750	2,000		0	-2,000
Interest on loans made by Government	0	34		0	-34
Social Security	105,901	93,897		83,001	-10,896
Grants	21,399	24,676		18,142	-6,534
Miscellaneous Receipts	6,475	2,444		5,300	2,856
(b) Total Expenditure	371,929	341,644		453,071	111,427	32.6
Recurrent Expenditure	327,885	293,657		391,902	98,245	33.5
Personal Emoluments	69,156	73,760		76,553	2,792
Operational and Maintenance Expenses	12,310	14,687		31,030	16,342
Programmes and Initiatives	215,439	181,941		204,402	22,461
Contributions to Government Entities	30,981	23,268		79,917	56,649
Interest	18,338	17,355		14,743	-2,613	-15.1
Capital Expenditure	25,706	30,632		46,426	15,794	51.6
(a-b) Consolidated Fund Surplus/Deficit	114,080	209,904		-34,371	-244,275	-116.4
(c) Financial Transactions
Revenue
Loans	0	0		0	0
Repayment of Loans	0	0		0	0
Receipts from Sale of Shares	0	0		0	0
Other extraordinary receipts	0	0		0	0
Expenditure
Contribution to Sinking Fund	0	0		0	0
Equity Acquisition	0	10,000		0	-10,000
Repayment of Loan	92	1,478		343	-1,135
Loans	0	0		0	0

Note: Totals may not add up due to rounding.

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Table 3. Government Expenditure by COFOG category: January to August by year

	Personal Emoluments	Operational and Maintenance		Programmes and Initiatives	Contributions to Government
		Expenses				Entities
COFOG
Jan-Aug	Jan-Aug	Jan-Aug	Jan-Aug	Jan-Aug	Jan-Aug		Jan-Aug	Jan-Aug	Jan-Aug	Jan-Aug	Jan-Aug	Jan-Aug
	2018	2019	2020	2018	2019	2020		2018	2019	2020	2018	2019	2020
							€ 000
General public services	60,367	65,468	65,285	22,352	32,352	66,185		136,273	189,193	159,388	13,645	27,207	36,216
Defence	26,821	27,111	28,162	3,145	4,134	4,230		347	582	480	150	121	218
Public order and safety	61,400	70,921	58,942	7,576	11,599	6,187		3,834	4,804	4,221	5,779	6,506	30,641
Economic affairs	41,851	40,320	41,696	6,338	7,921	16,918		99,221	100,537	144,683	79,898	104,801	121,551
Environment protection	0	3,152	3,487	243	187	81		19,391	39,985	38,028	18,615	18,453	19,146
Housing and community amenities	962	876	1,060	218	402	311		4,757	4,705	8,158	5,629	2,977	5,066
Health	164,730	181,087	195,768	39,023	39,555	42,086		130,925	153,964	205,040	35,299	37,525	52,037
Recreation, culture and religion	4,515	4,653	4,360	924	1,284	2,849		7,302	7,703	8,179	21,623	21,365	21,146
Education	146,304	155,442	168,287	17,049	10,482	11,025		98,407	119,800	148,717	65,890	67,862	96,101
Social protection	34,256	36,194	37,451	23,809	28,801	28,238		961,268	1,003,708	1,043,407	25,201	33,024	40,100
Total	541,206	585,225	604,498	120,676	136,717	178,110		1,461,724	1,624,981	1,760,300	271,730	319,840	422,222
	Interest Expenditure	Capital Expenditure		Total Expenditure
COFOG
Jan-Aug	Jan-Aug	Jan-Aug	Jan-Aug	Jan-Aug	Jan-Aug		Jan-Aug	Jan-Aug	Jan-Aug
	2018	2019	2020	2018	2019	2020		2018	2019	2020
					€ 000
General public services	139,124	126,487	121,329	31,310	46,297	49,748		403,071	487,004	498,151
Defence	0	0	0	756	2,988	2,564		31,219	34,936	35,653
Public order and safety	0	0	0	10,806	23,561	10,835		89,394	117,390	110,826
Economic affairs	0	0	0	121,486	170,493	380,856		348,794	424,073	705,703
Environment protection	0	0	0	9,779	38,861	24,585		48,028	100,638	85,326
Housing and community amenities	0	0	0	440	124	25		12,007	9,084	14,619
Health	0	0	0	11,876	5,931	24,535		381,853	418,061	519,466
Recreation, culture and religion	0	0	0	10,690	9,171	12,917		45,054	44,176	49,451
Education	0	0	0	13,126	13,171	12,024		340,775	366,756	436,155
Social protection	0	0	0	2,516	2,408	6,516		1,047,049	1,104,135	1,155,712
Total	139,124	126,487	121,329	212,784	313,003	524,604		2,747,244	3,106,253	3,611,062