Quarterly figures on General Government Finances published today by NSO show that during the first quarter of this year, Government revenue recorded a strong increase of €59.1 million across all revenue categories.

The highest increase was registered in revenue from taxes on production and imports. This reflects the robust growth in private consumption which increased by €45.2 million during the same period. Of note is also the increase in revenue from current taxes on income and wealth and net social contributions which rose by €17.5 million and €8.9 million respectively, on the back of dynamic performance in the labour market largely thanks to Government’s success in making work pay and easing access to the labour market.

On the expenditure side, the highest increase was recorded in investment which increased to €94 million reflecting the commencement of various infrastructural projects which will continue enhancing the productive capacity of the Maltese economy.

Minister for Finance Edward Scicluna remarked, “The increases in both revenue and expenditure are in line with Government fiscal targets. We are also pleased to note the strong increase in the tax base, namely income and consumption which is reflective of the increasingly strong performance of the Maltese economy.”

The General Government deficit stood at €172.3 million. This includes one-off adjustments of €86.9 million mainly due to EU funded projects and the Air Malta loan to equity injection.

Thursday 9th July 2015