Government deficit for 2011 at 2.7% of GDP
The General Government deficit for 2011 stood at €177 million or 2.7% of GDP. The gross consolidated debt amounted to €4,607.4 million or 70.9% of GDP.
In 2011, General Government net borrowing (or deficit) was recorded at €177.0 million, down from €224.5 million for 2010. Last year, the General Government deficit was equivalent to 2.7% of GDP, down from 3.6% for 2010.
At the end of 2011, the General Government nominal gross consolidated debt amounted to €4,607.4 million, or 70.9% of GDP, up from €4,257.7 million, or 68.3% for 2010.
The balance of the Government's consolidated fund, amounting to -€218.6 million (published in news release 63/2012) is adjusted to arrive at the General Government Sector's deficit for 2011. Positive adjustments included the time-adjusted cash transactions (+€39.9 million) and the nonfinancial transactions in the treasury clearance fund (+€24.4 million). On the other hand, the main negative adjustments were other accounts receivable and payable (-€16.9 million) and other financial transactions (-€7.4 million).
On September 28, Malta submitted its report on government deficit and debt levels for the years 2008-2012. This was done in accordance with Council Regulation (EC) No. 479/2009, as amended, as well as in accordance with the Code of Best Practice adopted by the Ecofin Council on 18 February 2003.
Compared to the previous submission of March 30, the following updates were made:
- Reclassification of Property Management Services Ltd within the General Government Sector. This had a negative impact on the deficit, mainly in 2009 by €8.0 million, and also triggered a revision in government debt levels for 2009 (+€8.0 million), 2010 (+€7.0 million) and 2011 (+€6.0 million).
- The availability of audited financial statements for the Extra Budgetary Units resulted in a revision in government deficit for 2009 (+€0.3 million) and 2011 (-€3.1 million). This impacted on gross consolidated debt for 2009 (-€0.4 million) and 2011 (+€0.8 million).
- Local Councils were adjusted according to the latest audited financial statements, which led to a downward revision of the net borrowing of general government for 2010 (-€0.1 million) and 2011 (-€0.6 million). Their debt levels for 2011 were revised upwards by €0.3 million.
- Updated accruals adjustments resulted in revisions in other accounts receivable and payable with net positive impact on government deficit by €3.4 million in 2010 and €0.8 million in 2011. EDP Consolidated Inventory.
The latest version of the 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 A list at the end of this Release shows the EBUs which formed part of the General Government sector as at December 31, 2011