The latest General Government data published by the National Statistics Office (NSO) shows a reduction of €116 million in the deficit during the first quarter of the current year, when compared with the first quarter of 2015.

The significant reduction in the deficit was driven by a combination of a fall in expenditure and an increase in revenue. While revenue grew by €85 million or 11.2 per cent, Government expenditure fell by €30 million or 3.3 per cent year-on-year.

PRESS RELEASE ISSUED BY THE MINISTRY FOR FINANCE

Revenue from current taxes on income and wealth was the highest contributor to this revenue increase, reflecting the record increase in employment coupled with a historically low unemployment rate and the lowest youth unemployment rate in comparison with the other EU member states. This remarkable result was achieved in spite of successive yearly income tax reductions made during this legislature. On the expenditure side, part of the fall in expenditure reflected 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 programme this year.

Minister for Finance Prof Edward Scicluna commented that: “The contributors to these changes both on the revenue side and the expenditure side were foreseen and are in line with our projections.”

Friday, 08 July 2016