The General Government deficit for 2008 is estimated at €266.5 million, or 4.7 per cent of GDP.

General Government Debt and Deficit under Maastricht Treaty: First Reporting for 2009

On the 30th of March 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 18th of February 2003.

Debt and Deficit Positions

In 2008, General Government net borrowing (or deficit) was estimated at €266.5 million, up from a deficit of €119.5 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 €3,629.9 million, or 64.1per cent of GDP; compared to €3,379.2 million, or 62.1 per cent of GDP for 2007. With effect from 2008, the Malta Shipyards has been reclassified within the General Government Sector. Malta Shipyards accounted for €64.7 million of the total General Government deficit. This amount included €42.3 million paid in respect of the voluntary retirement schemes.

Updates

The previous Government Deficit and Debt recording had been transmitted to the Commission on 30 September 2008, and was reported in NSO News Release No.185/2008 dated 22 October 2008. The following main updates were effected:

a) The subsidies payable by Government to Enemalta were accruals-adjusted following the publication of the corporation’s audited financial statements for the years 2005-2007. This revision impacts the deficit negatively in 2005 (-€2.4 million), 2006 (-€13.5 million) and 2007 (-€3.3 million) and positively in 2008 (+€18.2 million)

b) The 14th Social Security benefits payment which was cash-recorded in 2008 but was actually due in 2007. This affected negatively the expenditure of 2007 by €21.4 million and affected positively 2008 by the same amount.

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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