On 30 September, Malta submitted its report on government deficit and debt levels for the years 2006- 2010. This was done in accordance with Council Regulations (EC) No. 679/2010 and 479/2009, as well as in accordance with the Code of Best Practice adopted by the Ecofin Council on 18 February 2003.

Deficit and Debt Positions

In 2009, General Government net borrowing (or deficit) was estimated at €216.9 million, down from a deficit of €273.7 million for 2008. In 2009, General Government deficit was equivalent to 3.8 per cent of GDP, down from 4.8 per cent for 2008.

At the end of 2009, the General Government nominal gross consolidated debt amounted to €3,947.1 million, or 68.6 per cent of GDP, up from €3,626.6 million, or 63.1 per cent 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. Positive adjustments included the surplus of the Extra Budgetary Units (EBUs) (+€80.6 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 (-€15.8 million) and other accounts receivable and payable (-€16.5 million).

Updates Compared to the previous submission of 29 March, the main update comprised the treatment of the Malta Government Stock issued following the transfer of immovable ecclesiastical property. This methodological adjustment is being recorded under accounts receivable and payable and impacts negatively the deficit for 2006 (-€10.3 million), 2007 (-€7.2 million), 2008 (-€14.0 million) and 2009 (- €0.4 million).

The deficit of the General Government for 2009 was revised downwards by €1.3 million, to €216.9 million. This revision was the result of updated sources in respect of EBUs (-€2.5 million), treasury clearance fund flows (+€2.3 million), other accounts receivable and payable (+€0.7 million) and Local Councils (+€0.8 million).

The General Government deficit for 2008 increased by €18.9 million, due to the other accounts receivable and payable (-€17.4 million) and EBUs (-€1.5 million). No statistically significant revisions to the aggregate General Government debt levels were recorded for the reference years.

EDP Consolidated Inventory

An updated 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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