Latest Government Finance Data issued today by the National Statistics Office (NSO) show that the consolidated fund deficit for the first four months declined by €31.1 million over the previous year.

PRESS RELEASE ISSUED BY THE MINISTRY FOR FINANCE

During the first four months of this year, tax revenue increased by €110.4 million or by 13.1 per cent over the same period of last year. Revenues from income tax recorded the highest increase, rising by €43.5 million year-on-year followed by revenue from social security contributions which increased by €26.9 million. These increases reflected the consistently high employment growth recorded in the recent period coupled with a historical low unemployment rate. Notable increases were recorded in all the other tax revenue components including licences, taxes and fines, customs and excise duties as well as VAT. This continues to reflect the broad-based growth recorded by the Maltese economy in the recent period.
Non-tax revenue figures for the first four months of 2016 continued to be highly influenced by the lower Grants component. This decrease reflects the closure of the European Union financing period 2007-2013 at the end of last year and the start of the 2014-2020 EU funding program. These reductions would be balanced by lower EU funded capital expenditure. Indeed, capital expenditure for the first four months was €63.5 million lower than the peak of the previous year.
Despite the Grants component, recurrent revenue was still €14.3 million or 1.4 per cent higher than last year and €28.3 million or 2.7 per cent higher than projected.
During the same period, recurrent expenditure increased by €48.1 million or by 5.1 per cent over last year with the main contributors being contributions to government entities which increased by €15.0 million. However when compared to MFIN’s forecasts, recurrent expenditure was lower than the forecast as a result of lower than estimated expenditure on programs and initiatives and personal emoluments.
Minister for Finance Prof. Edward Scicluna remarks: “I am pleased to note that Government finances for the first four months of this year are in line with projections.”

Friday 27th May 2016