Speaking to the finance and budget working group on Monday, finance minister Pierre Gramegna (DP) said there was a 9.6% decline in revenues up to 31 August 2020.

At that time, total tax losses from the cancellation of advances and agreements on direct tax deadlines amounted to €222m and VAT refunds came in at €1.25b. Figures were not yet available for September 2020.

Expenditure

Giving a breakdown of the country’s expenditure, Gramegna said that €129m in aid had been issued, mostly to retailers, restaurants and specialised construction firms. The aid figure doubled since July when it was €68m. Additional expenses were incurred for the part-time working scheme, aimed at subsidizing salaries for people unable to work because of the pandemic.

Taking into account the evolution of revenues and expenditures as a whole, the situation of the central administration shows a deterioration of €-3.5 billion compared to August 2019. The balance of the Central Administration thus amounts to €-2.9 billion at the end of August 2020, while in 2019 the balance was at the same time positive by more than €600 million. Further figures can be found here.

On Wednesday, Gramegna will present the draft 2021 budget, comprised of State revenue and expenditure and multi-year financing up to 2024.