Malta last year managed to bring its deficit down a notch as a percentage of GDP, according to NSO statistics.

In 2010, the net government deficit was estimated at €226.3 million, up from €217 million for 2009. However, it works out at 3.6 per cent of GDP, down from 3.7 per cent in 2009.

By next year, the deficit is meant to be reduced further to below three per cent of GDP in line with EU-set targets for the island.

Total debt outstanding at the end of December 2010 advanced by €294.3 million over 2009, amounting to €4,248.3 million or 68 per cent of GDP, up from €3,954 million, or 67.6 per cent, for 2009, the NSO said.

Eurostat figures showed that, last year, government deficit of both the eurozone and the whole of the EU fell when compared to 2009 while government debt and GDP increased.

In the euro area, government deficit to GDP ratio went down from 6.3 per cent in 2009 to six per cent last year and in the EU27 it dropped from 6.8 per cent to 6.4 per cent.

In the eurozone, government debt to GDP ratio increased from 79.3 per cent at the end of 2009 to 85.1 per cent at the end of 2010 and in the EU27 from 74.4 per cent to 80 per cent. Meanwhile, the Malta government deficit for the fourth quarter of 2010 amounted to €51.7 million, up from €11 million in the same period of 2009.

Total revenue for the quarter stood at €673 million, an increase of €14.5 million. The main contributors were taxes on production and imports (€26.2 million), social contributions (€7.9 million) and capital transfers (€6.6 million).

A notable decline in revenue of €27.5 million was recorded in current taxes on income and wealth.

Total expenditure stood at €724.6 million, up by €55.1 million. The increases were mainly in intermediate consumption (€15.7 million), gross capital formation (€11.7 million) and social benefits and social transfers in kind (€9.1 million). On the contrary, current transfers payable registered a drop of €2.3 million.