Government deficit at €263 million in 2013

The government deficit narrowed to €99.1 million in 2013 through an increase in government revenue of €276.4 million over added spending of €177.3 million.

Finance minister Edward Scicluna yesterday described these results as "the the fruit of the new direction that has been adopted by an energetic government which focused on safeguarding economic stability."

Scicluna, earmarked to be Malta's next European Commissioner, said the rate of economic growth achieved was four times the growth registered during 2012 and that Malta had avoided the imposition of budget cuts from the EC.

During 2013, recurrent revenue stood at €2,992.1 million, up by 10.2 per cent over the previous year.

The main contributors to this increase were Income Tax (€101.7 million), Grants (€80.9 million), Value Added Tax (€53.0 million), Social Security (€35.6 million) and Customs and Excise Duties (€22.6 million). Conversely, Miscellaneous Receipts registered a decline of €26.2 million.

Compared to 2012, higher spending was registered in recurrent and capital expenditures, resulting in an increase in total expenditure of €177.3 million.

Recurrent spending went up by €144.2 million, primarily on Programmes and Initiatives (€81.7 million) and on Personal Emoluments (€41.2 million).

Programmes advanced by 5.3 per cent as a result of higher social security benefits by €31.9 million. In addition, EU own resources rose by €19.7 million, while the social security state contribution, which also features as revenue, went up by €11.3 million. Increases were also registered in medicines and surgical materials (€5.3 million) and in expenditure on the Electoral Commission (€3.2 million).

Operational and Maintenance Expenditure added €12 million, while Contributions to Government Entities went up by €9.3 million.

Debt servicing costs for the period under review rose by €2.1 million to €227.9 million.

Capital spending amounted to €394.7 million. The increase of €30.9 million includes an equity injection of €40 million to Air Malta, compared to €20 million in 2012.

Conversely, contribution towards the treasury clearance fund and the ICT core services agreement went down by €4 million and €3.1 million respectively.

Government debt stood at €4,980.0 million, up by €330.4 million over 2012. This was the result of higher long-term and short-term borrowing, which added €259.2 million and €94 million respectively.

Foreign borrowing went down by €11 million. As a result of consolidation, higher holdings by government funds in MGSs brought about a decline in debt of €16.6 million.

The euro coins issued in the name of the Treasury went up by €4.8 million when compared to the coin stock as at the end of December 2012, and totalled €55.3 million.