Tax revenue falls by €27.5 million as deficit grows in last quarter of 2010

The government deficit has gone up to €51.7 million in the last quarter of 2010, up from €11 million for the same period in 2009. At €226.3 million, the 2010 deficit increased from €217 million in 2009, equivalent to 3.6% of GDP, down from 3.7% in 2009.

During the October-December quarter, total revenue stood at €673 million, an increase of €14.5 million compared to the corresponding quarter in 2009. The main contributors were taxes on production and imports (€26.2 million), social contributions receivable (7.9 million) and capital transfers (€6.6 million).

But a notable decline in revenue was recorded in income tax of €27.5 million.

Total expenditure stood at €724.6 million, up by €55.1 million from the comparable period in 2009. These increases were mainly triggered by intermediate consumption (€15.7m), gross capital formation (€11.7m), and social benefits and transfers (€9.1m) among others.

Major declines in financial transactions in assets were recorded in currency and deposits and other accounts receivable of €87.4 million and €99.8 million respectively.

On the other hand, short-term loans increased by €14.9 million, mainly triggered by the loan granted to Air Malta plc as part of its restructuring which amounted to €15.1 million.

Total government debt outstanding at the end of December 2010 advanced by €294.3 million from the comparable period in 2009, and amounted to €4,248.3 million. This was underpinned by higher long-term securities (Malta Government Stocks), which went up by €387.2 million.

Figures issued today by Eurostat shows Malta had one of the higher ratios of government debt to GDP. Fourteen Member States had government debt ratios higher than 60% of GDP in 2010: Greece (142.8%), Italy (119.0%), Belgium (96.8%), Ireland (96.2%), Portugal (93.0%), Germany (83.2%), France (81.7%), Hungary (80.2%), the United Kingdom (80.0%), Austria (72.3%), Malta (68.0%), the Netherlands (62.7%), Cyprus (60.8%) and Spain (60.1%).