On the 30th of September 2009, Malta submitted its report on government deficit and debt levels for the years 2005-2009. This was done in accordance with Council Regulation (EC) Nr 3605/93, and subsequent amendments, as well as in accordance with the Code of Best Practice adopted by the Ecofin Council of the 18 February 2003. This is Malta’s second submission for 2009, and updates the first submission of 30 March, which was reported by the National Statistics Office on the 22nd of April.

Debt and Deficit Positions

In 2008, General Government net borrowing (or deficit) was estimated at €265.4 million, up from a deficit of €118.9 million for 2007. In 2008, general government deficit was equivalent to 4.7 per cent of GDP, compared to 2.2 per cent of GDP for 2007.

At the end of 2008, the General Government nominal gross consolidated debt amounted to €3,626.2 million, or 63.8 per cent of GDP; compared to €3,379.2 million, or 62.0 per cent of GDP for 2007.

Updates

Compared to the previous submission of 30 March, the following updates were made:

2007 – The deficit of the General Government decreased by €0.6 million on account of updated data sources from the Extra Budgetary Units (EBUs).

2008 – The deficit of the General Government has been revised downwards by €1.1 million, from €266.5 million to €265.4 million. This revision was the result of more complete information in respect of the EBUs (-€0.4 million), Local Councils (+€0.1 million) and accruals data (-€0.7 million).

The estimated General Government nominal gross consolidated debt was revised downward by €3.7 million. Updated data sources have necessitated the downward revision of the debt of EBUs and Local Councils, by €3.4 million and €0.2 million respectively.

No significant revisions were made to data for the years prior to 2007.

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