Updated 3.40pm with Finance Minister's comments - The government recorded a surplus of €154.4 million during the period July-September 2017 as a result of more revenue - even though expenditure also rose.

“A surplus of that magnitude shows beyond any doubt that Malta’s public finances are indeed sustainable, with public expenditure keeping within normal revenue streams”,  Finance Minister Edward Scicluna said.

Total revenue stood at €1,159.2 million, an increase of €189.2 million when compared to the third quarter of 2016, the National Statistics Office said on Thursday.

"This significant increase in revenue was mainly driven by a combination of higher current taxes on income and wealth, the latter reflecting the dynamic performance of the labour market." the Finance Ministry said. Higher proceeds were also recorded in other revenue components, including taxes on production and imports, net social contributions receivable, market output, and current transfers receivable.

Total expenditure in the third quarter of 2017 amounted to €1,004.8 million, an increase of €57.8 million from the third quarter of 2016.

Increases were recorded mainly in Intermediate Consumption (€45.3 million), Compensation of Employees (€22.1 million) and Social Benefits and Social Transfers in Kind (€20.9 million).

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Total general government debt outstanding at the end of September 2017 increased by €41.7 million to €5,831.6 million.