The deficit recorded by General Government for the fourth quarter last year amounted to €45.4 million, compared to a deficit of €7.5 million for the fourth quarter of 2007.

During the December quarter total revenue amounted to €624.2 million, a decrease of €32.6 million compared to the same quarter of 2007. Revenue classified as ‘current taxes on income, wealth, etc’ decreased by €40.6 million, while capital transfers receivable declined by €15.8 million mainly on account of less grants received. On the other hand increases were reported under ‘social contributions receivables’ (+€16.5 million) and ‘market output’ (+€10.7 million). Concurrently total expenditure during the last quarter amounted to €669.6 million, a comparative increase of €5.3 million.

This increase was brought about by increases in social benefits (€34.9 million) and compensation of employees (€19.9 million). In contrast expenditure on ‘gross capital formation’ and ‘subsidies payable’ decreased by €23.5 million and €21.2 million respectively.

The aggregated deficit for 2008 is estimated at €266.5 million, compared to a deficit of €119.5 million for 2007.

For the first time, the National Statistics Office is publishing the quarterly financial accounts for general government (QFAGG) consolidated as from 2004 Q1, compiled on the basis of accounting and statistical returns. Quarterly financial accounts for general government include data on balance sheet stocks of assets, balance sheet stocks of liabilities , transactions in assets and transactions in liabilities.

The financial instruments comprise mainly, Currency and deposits (AF/F.2), Securities other than shares (AF/F.3) which are sub-divided into Short-term Securities (AF/F.331) and Long-term Securities (AF/F.332), Financial derivatives (AF/F.34), Loans (AF/F.4) which are also sub-divided into Short-term Loans (AF/F.41) and Long-term Loans (AF/F.42), Shares and other equity (AF/F.5), and Other accounts receivable/payable (AF/F.7).

When compared to December 2007, total general government debt outstanding at the end of December 2008 increased by €250.6 million, and amounted to €3,629.9 million. This increase was underpinned by the higher long-term securities (Malta Government Stocks) which added €201.1 million, while short-term securities (Treasury Bills) increased by €10.9 million.

Moreover, as from December 2007, the euro coins issued in the name of the Treasury are being considered as a currency liability pertaining to the Central Government. At the end of December, this liability amounted to €31.2 million.

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