Malta meets a large number of the principles of the Fiscal Transparency Code at good or advanced level. Based on the assessment made in this report, Malta meets the good or advanced practice on 21 out of 35 principles in the Code. One principle, related to natural resources, was not relevant to Malta and therefore not assessed. Malta meets the basic practice on a further 12 principles (Table 0.1). Practices are stronger in the areas of fiscal reporting and fiscal forecasting and budgeting, where Malta is subject to and complies with the comprehensive reporting framework established by the European Union. Practices are generally weaker in the area of fiscal risk analysis and management, notably oversight of public corporations.
This 2008 Article IV Consultation highlights that Malta has experienced a three-year-long expansion reflecting strong foreign direct investment, export diversification, and value-added upgrading. Financial soundness indicators held up in 2007 despite unfavorable international developments. The banking sector’s liquidity and funding profile are healthy, and banks have remained profitable despite markdowns in security portfolios. Nonperforming loans fell further but are still comparatively high and thinly provisioned. The authorities are unbundling and opening to private participation the fuel and gas operations of the public energy company.
This paper reviews economic developments in Malta during 1990–95. The paper presents an overview of some of the main structural policies and describes recent developments in the domestic economy. It notes that, whereas policies have favored private initiative, the government has retained a significant presence in the economy both through its direct control of resources and through an active industrial policy. The policy mix has helped to accentuate certain trends in the structure of output since 1987: in particular, the importance of services has continued to grow at the expense of manufacturing.