Slight decline in budget implementation up until September

The implementation rate of the state budget both regarding revenue and expenditure declined slightly up to the end of September 2024 with the implementation rate falling to 68% and 59% respectively compared to 71% and 64% of the respective period of last year, data released by the Treasury show.

The Treasury said that both revenue and expenditure were affected by the timing concerning the absorption of loans as well as the maturities of debt concerning the public expenditure. The implementation of the state budget is carried out on a cash basis.

Furthermore, implementation rate of development expenditure remained unchanged to 37% of the total allocated expenditure, the same as in the respective period of last year.

According to the data, until the end of September 2023, total revenue amounted to €7.72 billion, corresponding to 68% of the total budget compared with €6.98 billion of 71% of the respective period of last year, whereas expenditure reached €7.94 billion amounting to 59% of the budget’s total expenditure compared with 65% of the respective period of last year.

With regard to revenue, indirect taxes which constituted the 39% of total revenue, rose by €0.31 billion in the period or by an annual 11%, mainly due to increases in VAT, by €0.3 billion, amounting to €2.2 billion up to September 2024 from €1.9 billion in the respective period of last year.

Direct taxes, which amounted to 35% of total revenue, rose by €0.44 billion or 19% compared with the same period last year, mainly driven by Corporate Income tax which amounted to €2.46 up to September 2024, from €2.02 billion in the respective period of last year, the Treasury added.

Absorption of loans up to the end of September declined marginally to €1.10 billion from €1.13 billion in the respective period of last year, due to reduced absorption of loans from abroad.

On the expenditure side, the state wage bill (both salaries and pensions) represented 29% of total expenditure, with implementation rising by 12% year on year to €2.46 billion up to September 2024, compared with €2.20 billion in the respective period of last year.

Debt servicing expenditure was the second highest of the budgeted spending, amounting to €1.96 billion by end-September 2024, from €2.10 billion in the respective period of last year.

Social spending by end-September 2024 amounted to €1.33 billion, from €1.24 billion in the same period of last year. The increase is mainly attributed to increased payments in healthcare by €0.04 billion, to €0.55 billion and increased welfare spending which amounted to €0.54 billion compared with €0.51 billion in the respective period of last year.

The implementation of development expenditure remained at 37% with spending up to September 2024 amounting to €0.57 billion from €0.53 billion in the respective period of last year.

(Source: CNA)