While the impacts of COVID-19 from a health and economic perspective across the globe are abundantly clear, movements within the national coffer provide a snapshot of the extent of the disruption faced by the country.
COVID-19 struck Malta on 7th March, while all ports were closed and shut down to commercial travel between 21st March and 1st July. Since then, the country has been impacted by a second wave, which has seen the introduction of fresh restrictions on incoming passengers and the organisation of mass events.
Ahead of Budget 2021 and the impending flu-season, expectations remain for Government to continue providing assistance to the worst-hit industries.
The following are a round-up of headline figures outlining the Government of Malta’s public finances between January and July 2020:
- €1.1 billion - the deficit in the Government’s Consolidated Fund in the first seven months of this year.
- €2.6 billion - the recurrent expenditure in the first seven months, up €200.1 million over the corresponding period in 2019.
- €1.2 billion - the increase in Government debt by the end of July over the previous year, to stand at €6.6 billion.
- €2.1 billion - the recurrent revenue at the end of July, down 20.2 per cent in the same period a year earlier.
- €494.3 million - the drop in GDP in the second quarter.
- €206.7 million - the decrease in income tax at the end of July.
- 56% - the decrease in income tax at the end of July.
- €106.6 million - the interest component of public debt servicing costs between January and July, down €2.5 million.
- €478.2 million - the capital spending at the end of July, a rise of €195.8 million.
- 6.6% - the contraction in GDP expected this year.
- 8.6% - the projected deficit in public finances in relation to GDP.
All figures have been lifted from publicly available information published by the Central Bank of Malta and the National Statistics Office. These figures were also carried in the September edition of the Commercial Courier