Updated 12.50pm - Added government statement 

Malta recorded a €2.4 million deficit in the third quarter of 2016, official statistics released today show. 

Total revenue climbed by €66.7 million when compared to Q3 in 2015 to reach €950.8 million, while total expenditure climbed by €48.5 million to reach €953.2 million.

In a statement, the government said that the €2.4 million quarterly deficit was the lowest Malta had ever registered since the statistic had been compiled. 

"Deficit reduction happened because government revenue rose by 7.5 per cent," the government said in a statement. "Fiscal results strengthen our resolve to avoid austerity politics and instead work to favour a climate of investment."

Revenue increases were mainly triggered by higher market output (€64.8 million) and higher receipts from taxes on income and wealth (€39.9 million). Income from taxes on production and imports and net social contributions also increased. 

On the other hand, proceeds from capital transfers receivable and current transfers receivable recorded a decline of €48.0 million and €8.2 million respectively. 

Expenditure increases were recorded in intermediate consumption
(€24.3 million), compensation of employees (€18.3 million), current transfers payable (€16.2 million), subsidies payable (€10.3 million), capital transfers payable (€9.3 million) and social benefits and social transfers in kind (€1.9 million). 

The main decreases were recorded in gross capital formation (€30.5 million) and property income payable (€1.3 million). 

Adjustments to the consolidated fund required to achieve compliance with ESA 2010 provisions triggered a €49.4 million decline in the fund's surplus, the NSO said. 

Government debt

Total general government debt outstanding at the end of September increased by €139.7 million over the third quarter of 2015. General government debt amounted to €5,823.2 million, of which €5,819.4 million related to central government.