€23 million surplus in first four months of 2024

The strongest financial performance on record for the period January-April.

In the first four months of the year the Government had a surplus of €23 million. This was the best financial result ever observed for the first four months of the year since the collection of these statistics. In fact, it was only in 2017 that a surplus was observed in the first four months of the year, but then the surplus reached only €21 million. In 2012, the deficit until April had reached €232 million. But the worst result ever observed was in the first four months of 2009, when the deficit had touched €236 million.

Last year in the same months there was a deficit of €192 million. This means that this year there has been an improvement of €215 million in public finances. This unprecedented strong improvement, which is far more than anticipated in the Budget, came about because government revenues grew at a much greater rate than outlays increased. In fact, government revenue grew by a record €361 million or more than 19%. Most of the increase was due to higher income from income tax, social security, and VAT. This reflected the sustained economic growth of the Maltese economy.

Government expenditure has grown by half of the increase in revenue, with an increase of €146 million. More than one third of this increase was due to improvements in social benefits, including pensions and children’s allowance. There has also been an increase in wages, due to improvements in the working conditions of various categories of public servants.

Due to the positive performance of the public finances between February and April, central government debt decreased by almost €150 million.

These positive results explain why in recent months credit rating agencies have been confirming Malta’s positive ratings.

Photo: Polina Kovaleva

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