Gramegna (DP) on 21 June delivered a monthly report to members of parliament about public finances. Revenue rose to €8.8bn at the end of May, up from €6.9bn at the same time last year (+27.8%). At the same time, spending declined 6.5%, from €9.3bn to €8.7bn.

“At the end of May, public finances improved further, confirming the economic recovery already observed in recent months,” Gramegna said in a statement. “I am particularly delighted with this favourable development in public revenue and expenditure, with a gradual return to normality which is now shaping up.”

The positive trend has allowed the state to chip away at its deficit accrued last year, shrinking this to €1.06bn. “If the figures continue in this direction, then we hope to absorb the budget deficit of €2.5bn in the fiscal year 2020 over the next two to three years,” Gramegna said in parliament.

The registration duties, estates and VAT authority (AED) saw the biggest increase in revenue, up 39.8% compared to the year before, reaching €2.8bn, with consumer spending picking up.

Overall, the state has already pocketed 46.6% of the revenue budgeted for 2021, making it slightly ahead of schedule for the first five months of the year.