Malta government deficit confirmed at 3.3% in 2012

Malta's deficit has been confirmed at 3.3% by the European Union's statitiscal arm Eurostat, with a corresponding national debt of 72.1%.

In 2012, the government deficit of both the euro area (EA17) and the EU27 decreased in absolute terms compared with 2011, while the government debt rose in both zones.

In 2012, Malta's deficit was at €225.9 million, up from €183 million in 2011 - the deficit was equivalent to 3.3% up from 2.8% the year before.

Gross debt amounted to €4,871.2 million, or 72.1 per cent of GDP, up from €4,607.3 million, or 70.3 per cent for 2011.

The balance of the government's consolidated fund, amounting to -€342.3 million is adjusted to arrive at the general government sector's deficit for 2012. Positive adjustments included other accounts receivable and payable (+€89.8 million), the time-adjusted cash transactions (+€40.2 million) and the non-financial transactions in the treasury clearance fund (+€14.8 million).

On the other hand, the main negative adjustments were the equity injection to the national air carrier (-€20.0 million), the net borrowing of Extra Budgetary Units (-€6.1 million), interest receivable (-€2.6 million) and the difference between interest paid and interest accrued (-€2.3 million).

On 28 March, Malta submitted its report on government deficit and debt levels for the years 2009-2013.

Compared to the previous submission of 28 September, the following updates were made:

- The deficit of the General Government for 2011 was revised upwards by €6.0 million, with updates in the other accounts receivable and payable (+€2.9 million), EBUs (+€2.6 million) and Local Councils (+€0.6 million).

- The General Government deficit for 2010 increased by €1.3 million, due to updated data sources in respect of other accounts payable (+€1.2 million) and the EBUs (+€0.1 million).

- The deficit of the General Government for 2009 was revised downwards on account of other accounts receivable and payable (-€5.9 million).

In the euro area the government deficit to GDP ratio decreased from 4.2% in 2011 to 3.7% in 2012, and in the EU27 from 4.4% to 4.0%. In the euro area the government debt to GDP ratio increased from 87.3% at the end of 2011 to 90.6% at the end of 2012, and in the EU27 from 82.5% to 85.3%.

In 2012 the lowest government deficits in percentage of GDP were recorded in Estonia (-0.3%), Sweden (-0.5%), Bulgaria and Luxembourg (both -0.8%) and Latvia (-1.2%), while Germany (+0.2%) registered a government surplus.

Seventeen Member States had deficits higher than 3% of GDP: Spain (-10.6%), Greece (-10.0%), Ireland (-7.6%), Portugal (-6.4%), Cyprus and the United Kingdom (both -6.3%), France (-4.8%), the Czech Republic (-4.4%), Slovakia (-4.3%), the Netherlands (-4.1%), Denmark and Slovenia (both -4.0%), Belgium and Poland (both -3.9%), Malta (-3.3%), Lithuania (-3.2%) and Italy (-3.0%).

In all, thirteen Member States recorded an improvement in their government balance relative to GDP in 2012 compared with 2011, twelve a worsening and two remained stable.

At the end of 2012, the lowest ratios of government debt to GDP were recorded in Estonia (10.1%), Bulgaria (18.5%), Luxembourg (20.8%), Romania (37.8%), Sweden (38.2%), Latvia and Lithuania (both 40.7%).

Fourteen Member States had government debt ratios higher than 60% of GDP: Greece (156.9%), Italy (127.0%), Portugal (123.6%), Ireland (117.6%), Belgium (99.6%), France (90.2%), the United Kingdom (90.0%), Cyprus (85.8%), Spain (84.2%), Germany (81.9%), Hungary (79.2%), Austria (73.4%), Malta (72.1%) and the Netherlands (71.2%).

In all, six Member States recorded an improvement in their government debt relative to GDP in 2012 compared with 2011 and twenty-one a worsening.