On track to reach fiscal targets

Government finance data for the first nine months of 2015 show that the consolidated fiscal balance improved by €122.3 million when compared to last year.





Revenue streams retained their momentum, with recurrent revenue increasing by €285.6 million during the first three quarters. The main drivers of this increase were revenue from customs and excise duties (€74.3 million) and revenue from income tax (€71.9 million). Revenue from VAT and social security also registered solid increases, rising by €31.9 million and €28.2 million respectively.





Such a positive outcome reflects Malta’s robust economy, which grew by 5.1 per cent during the first half of this year, spurred by a buoyant labour market and private consumption reflecting higher consumer and business confidence. Of particular note is the marked increase in income tax despite lower income tax rates for three consecutive years.

Capital expenditure also increases by €24.1 million reaching over €300 million in the first three quarters of this year. This expenditure reflects the strong and on-going investment in our infrastructure by the Government. Recurrent expenditure also increased by €137.8 million with the main increase recorded in Programmes and Initiatives. This item includes expenditure on health and education. In fact, among the notable increases in expenditure were the Own Resources, which are Malta’s contribution to the EU, medicines and surgical materials, contribution towards Church schools, and child care centres.

Minister for Finance, Scicluna remarked:‘These figures confirm that our projections for this year are still on track. We are confident that, similar to 2013 and 2014, we will be able to reach our ambitious fiscal targets for this year as well.’

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– Saturday, 31st October, 2015


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