2022: Malta registers fourth highest deficit in EU

Tista taqra dan l-artiklu bil-Malti.

Malta registered a deficit of 5.7% of GDP in 2022, the fourth highest among the 27 EU member states, according to new data published by the EU’s statistics arm, Eurostat.

Even though Malta had one of the highest economic growths in terms of GDP in 2022, the data shows that in 2022, Malta spent €982 million more than its revenue, increasing its general debt to a record of €9 billion.

Still, in terms of its overall debt, Malta stood at 52.3% of GDP, lower than the 60% threshold allowed by EU rules.

However, since its yearly deficit is well over the 3% mark, the island is expected to face an Excessive Deficit Procedure, forcing it into lowering its spending, once Brussels decides to re-introduce rules after their suspension due to the pandemic.

Eurostat said that Malta’s deficit in 2022 was the fourth highest among EU member states, only lower than Italy (8%), Romania (6.3%) and Hungary (6.2 %).

The average deficit in the EU in 2022 was 3.3%

Since taking the helm of the country in January 2020, the administration of Prime Minister Robert Abela has increased the county’s public debt by approximately €3.5 billion – from €5.7 billion to €9.2 billion by the end of June.

In the three and a half years of his tenure, debt levels have risen 61.4%, while €756.8 million was added over the last year alone. Furthermore, taxpayers are forking out some €3.85 million per week in interest payments alone as interest rates continue to soar.

The Council of the European Union’s recommendation on Malta’s 2023 National Reform Programme published in June warns that the European Commission has indicated it will propose opening deficit-based excessive deficit procedures against Malta in spring 2024 based on Malta’s data for 2023.

In May, the Commission published a report on Malta’s budgetary situation since its general government deficit in 2022 exceeded the 3% of GDP threshold. The report concluded that the EU’s deficit criterion was not fulfilled.

Despite the breach, the Commission did not propose the opening of excessive deficit procedures against Malta last spring but said it would propose doing so next year.

                           

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7 Comments
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Joseph Galea
Joseph Galea
1 year ago

Kemm ftahru ghax darba kienu qalu li ghamlu surplus !!

NGT
NGT
1 year ago
Reply to  Joseph Galea

and many people thought “surplus” meant that we were no longer in the red

wenzu
wenzu
1 year ago

The buffoon holding the red box has nothing to smile about with all the mismanagement under his watch.

Eduard
Eduard
1 year ago

Just look at our size, in fact, we are the best.

Sean
Sean
1 year ago
Reply to  Eduard

What ? Where has all the eu funding gone. Marsa bypass? The most corrupt country in Europe. 90% of that money is in the pockets of 1% of the people. Pirates, thieves, an racists.

saviour mamo
saviour mamo
1 year ago

At this point in time the budget and the budget speech have become irrelevant and should be postponed until further notice. What is most important to this country is to know who were those official persons that colluded with Vitals Global Healthcare and Steward Health Car to pass fund from the state coffers to Vitals /Steward Health Care. We have traitors in Castille.

Albert Mamo
Albert Mamo
1 year ago

I’LL BET ANYTHING THAT THIS CORRUPT LABOUR GOVERNMENT WONT BE ABLE TO CONTROL SPENDING!!!💯👎👹

THE CANCER OF SPENDING TAXPAYERS MONEY ON DIRECT ORDERS TO FILL THEIR POCKETS WON’T CEASE. MINTOFF HAD THE SAME PROBLEM!!!💯👎👹

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