Sharp drop in government deficit
Spending on social benefits went up by €31.4 million.
The government deficit for the second quarter this year amounted to €69.4 million, down from €90.9 million in the comparable period last year, the NSO said today.
During April-June 2012, total revenue stood at €654.8 million, an increase of €60.4 million when compared to the second quarter of 2011. The main contributors were 'current taxes on income and wealth' (+€45.1 million) and 'taxes on production and imports' (+€9.5 million).
Other increases were recorded in 'social contributions receivable' (+€3.5 million), 'current transfers receivable' (+€2.2 million) and 'property income receivable' (+€1.5 million).
Conversely, 'market output' declined by €2.0 million.
Total expenditure in the second quarter amounted to €724.2 million. 'Social
benefits and social transfers in kind' went up by €31.4 million. Higher outlays were recorded on 'intermediate consumption' (+€12.2 million), 'compensation of employees' (+€9.6 million), 'current transfers payable' (+€6.7 million), 'capital transfers payable' (+€4.9 million) and 'property income payable' (+€4.0 million).
These were partially offset by lower expenditure on 'gross capital formation'
(-€28.9 million) and 'subsidies payable' (-€1.0 million).
During the quarter under review, all financial transactions in assets registered an increase. The main additions were recorded in 'currency and deposits' and 'long-term loans' by €58.8 million and €43.4 million respectively. Concurrently, 'other accounts receivable' went up by €20.1 million whereas 'shares and other equity' rose by €11.2 million. 'Short-term loans' increased marginally by €0.9 million.
With regard to financial transactions in liabilities, 'long-term securities' advanced by €93.5 million whereas 'short-term securities' went up by €38.0 million. Moreover, 'long-term loans' and 'short term loans' increased by €33.8 million and €1.9 million respectively. Higher 'other accounts payable' by €43.2 million and 'currency and deposits' by €1.8 million were recorded.
DEBT
Total General Government debt outstanding at the end of June advanced by
€473.2 million over the comparable period in 2011. General Government debt amounted to €5,008.2 million, of which €5,004.0 million relates to Central Government.
The increase of €472.9 million in Central Government debt was underpinned by higher long-term securities (Malta Government Stocks) of €451.1 million and an increase in total loans of €99.4 million, mainly due to the EFSF rerouted debt.
Conversely, short-term securities declined by €82.1 million. The euro coins issued in the name of the Treasury, which are considered as a currency liability pertaining to the Central Government, amounted to €47.0 million, a rise of €4.5 million over the euro coin stock recorded at the end of June 2011. In addition, the Local Government debt edged up by €0.4 million and stood at €4.2 million.
23 Comments
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J Busuttil
Oct 26th 2012, 13:47
This article was published last Monday:
http://www.timesofmalta.com/articles/view/20121022/local/sharp-drop-in-government-deficit.442142
Angela Galea
Oct 22nd 2012, 19:18
The PL - groaning and moaning when still in opposition that will certainly continue if God forbid they are elected. They just don’t have a clue. How on earth can they stimulate the economy and the common good with all their nit-picking and negativity? It is a case of déjà vu. Remember 1996 - 1998 someone? So simple - Labour won’t work.
Charles Massa
Oct 22nd 2012, 18:55
Is solitu storja ta Gonzipn. Meta tkun gejja l-elezzjoni kollox imur tajjeb. L-istroja dejjem tirrepeti ruha. Issa jekk sejrin daqs hekk tajjeb allura il gvern imissu inaqqas l income tax bhal ma wieghed fl ahhar budget, izid il minimum wage u servizzi socjali, inaqqas il kontijiet ta dawl, ilma gas, petrol u diesel. Izid in nefqa fl edukazzjoni, fis sahha u jofri aktar medicini b xejn.
joseph demicoli
Oct 22nd 2012, 17:24
d.vella to keep the economy working like PN is very easy and everybody can do by continue increasing the national debt to the limit of Greece which is round the corner.
Saviour Fenech
Oct 22nd 2012, 15:38
Such figures are communicated by NSO to its counterpart in the European Union, Eurostat. Far from elections round the corner as such figures are always checked diligently.
Joe Fenech
Oct 22nd 2012, 14:35
Cut the flats for single parents. Who messes up must fork out !
Christina Sammut
Oct 22nd 2012, 14:07
May I welcome the good news and congratulate Dr Lawrence Gonzi, Mr Tonio Fenech and the rest of the team for a job well done. Well done to you all. At the moment, Malta surely is solely on the right track, thanks to a very focused and great leader despite all the trouble internally and externally.
Ronnie Callus
Oct 22nd 2012, 12:38
Nahseb li kulhadd jiehu gost b'dan ghax iggawdi kulhadd. Nisperaw li l-figuri li qed ittuna huma korretti u mhux xi haga ghax gejja l-elezzjoni.
joseph demicoli
Oct 22nd 2012, 12:31
bl-elezzjoni fil-qrib kollox possibli lol!!!!!
P Buħaġiar
Oct 22nd 2012, 12:15
The same electoral fables. Oil explored, deficit overwhelmed, profits for Airmalta, full employment, profits for dockyard, profits for freeport, power station efficient and no pollution, jobs secured for airmalta, and Go, and dockyrd employees A single swallow does not make a summer. This is a brainwashing campaign, which HIDES the true stories with the help of our national TV station.
m. borg (slm)
Oct 22nd 2012, 12:14
Mela jistghu irrahsu d-dawl u l-ilma issa , mhux hekk?
Joseph Micallef
Oct 22nd 2012, 12:14
LoooL ħallina GonziPN!! lil min trid tbellaħha? Tell it to the marines. Jaqaw se sejjaħ elezzjoni dalwaqt?
Charles Cremona
Oct 22nd 2012, 12:12
What the government seems to be doing is borrow more and more to fund its expenditure. The national debt is now over 5 Billion and that's not including the billions that Enemalta and other government entities owe. If we carry on like this our national debt will be one of the highest in the Eurozone. The next Labour government is going to inherit a debt timebomb waiting to explode.
D Vella
Oct 22nd 2012, 13:43
Oh yes,w e've all heard this one before! So if elected to govern, the Labour party is going to hide the fact that they haven't got a clue how to govern a country and keep an economy working by spending the first 12 months moaning and whining about the 'hofor' left by the wicked nationalists, then proceed to destroy the economy to the point where it takes a decade to recover . . . familiar?
Charles Cremona
Oct 22nd 2012, 15:37
What the government is doing is hiding the deficit by borrowing more and more. The problem is that from next January the Eurozone will not allow them to borrow hundreds of millions anymore so whoever is in government has to start cutting the budget or they will be fined, because that's what Gonzi PN agreed to with the Eurozone.
Jay Oatmon
Oct 22nd 2012, 11:57
Can we really believe what the politicians say (remember Greece & Spain)?
There needs to be a real effort to reduce the benefits fraud, and corruption in many areas.
Are we sure that the VAT scandal is dead and buried - or are abuses continuing for example?
There also needs to be a correlation exercise between vehicle owners and valid insurances/driving licenses.
Robert Henry Bugeja
Oct 22nd 2012, 11:46
Nahseb xi gimgha qabel l'elezzjoni anke id dejn ta 5 biljuni jkun gie solvut hux...HALLUNA MILL HREJJEF
Pierre Vassallo
Oct 22nd 2012, 11:57
What a moaner!
Victor Calleja
Oct 22nd 2012, 12:16
Anke id defecit jigi zero jekk mhux surplus ukoll.
Antonio Micallef
Oct 22nd 2012, 12:33
How easy it is to be a cynic!
Edward Mallia
Oct 22nd 2012, 12:35
Do us all the favour of reading a report properly before spouting silly blind partisan one-liners Mr. Bugeja.
Joseph E Briffa
Oct 22nd 2012, 13:35
@Robert Henry......What a silly comment. I suggest you read the article and try to understand it before you blurt out stupid comments.
Mary Ann Borg
Oct 22nd 2012, 14:17
Jigri jitla' Joseph ha jnehhi d-deficit kollu. Kif? Saqsi lilu jew lil Robert Henry Bugeja.
Please choose the reason of your report below: