On 29 March, Malta submitted its report on government deficit and debt levels for the years 2006-2010. 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 on 18 February 2003.

Debt and Deficit Positions

In 2009, General Government net borrowing (or deficit) was estimated at €218.2 million, down from a deficit of €254.8 million for 2008. In 2009, general government deficit was equivalent to 3.8 per cent of GDP, compared to 4.5 per cent of GDP for 2008.

At the end of 2009, the General Government nominal gross consolidated debt amounted to €3,947.6 million, or 69.1 per cent of GDP; compared to €3,626.6 million, or 63.7 per cent of GDP for 2008.

2009 data

The balance of the Government’s consolidated fund, amounting to -€297.0 million (published in news release 56/2010) is adjusted to arrive at the General Government Sector’s deficit for 2009. Postive adjustments included the surplus of the Extra Budgetary Units (EBUs) (+€83.1 million), primarily driven by a transaction which had a neutral effect on the general government (the transfer to the Malta Shipyards to settle its financial liabilities, recorded as revenue in the company’s accounts and as expenditure in the consolidated fund and treasury clearance fund), and time-adjusted cash transactions (+€24.3 million). The main negative adjustments were the treasury clearance fund (-€18.1 million) and other accounts receivable and payable (-€17.1 million).

Updates

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

The deficit of the General Government for 2008 was revised downwards by €10.6 million, from €265.4 million to €254.8 million. This revision was the result of updated sources in respect of EBUs (+€9.1 million), accruals templates and EU flows (+€3.2 million), other financial transactions (-€1.2 million), interest received not featuring in consolidated fund (-€1.1 million) and Local Councils (-€1.2 million).

The General Government deficit for 2007 decreased by €1.4 million, due to a revision in EBUs. No statistically significant revisions to the aggregate General Government debt levels were recorded for the reference years.

EDP Consolidated Inventory

An EDP Consolidated Inventory of Sources and Methods is available on the NSO website. This document may be accessed at http://www.nso.gov.mt/docs/EDP-Inventory.pdf

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