In 2017, the general government registered a surplus of €436.6 million, an increase of €335.7 million from the previous year, and equivalent to 3.9 per cent of GDP.

The figure should not be confused with the Government’s Consolidated Fund, which registered a surplus of €182.7 million in 2017, the National Statistics Office explained.

The balance is the difference between total revenue (€4,494.6 million) and total expenditure (€4,057.9 million),

Comparing 2017 over 2016, total revenue increased by €612.6 million, while total expenditure increased by €276.9 million.

When measured as a percentage of GDP, the surplus was 2.9 percentage points higher than in 2016.

Debt decreased by €85.8 million to €5,642.6 million over 2016. Together with a higher level of GDP, the debt-to-GDP ratio for 2017 was brought down to 50.8
per cent.

Understanding the 2017 data

Adjustments are done in order to transform the cash-based data of the Government’s Consolidated Fund into an accruals-based exercise compiled in line with established methodology.

The adjustments take in consideration the Extra Budgetary Units (EBUs) which are classified within the General Government Sector, as well as the Local Government Sector.

One major positive adjustment is the net lending (or surplus) recorded by EBUs of €240.5 million, an increase of €64.2 million over 2016.

The EBU registering the highest surplus was the National Development and Social Fund (NDSF) with €199.7 million, constituting 70 per cent of the contributions under the Individual Investor Programme.

Labour Party welcomes surplus

The Labour Party said that the government had - in just one legislature - managed to reverse all the increase in government debt accumulated during three legislatures by a Nationalist government.

This was also the first time in the country's history that finances had actually improved in an election year.