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Sharp drop in government deficit

Spending on social benefits went up by €31.4 million.

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.

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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.

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.

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