The Church's 2019 surplus of €3.5 million was wiped out by the financial and cash flow pressures resulting from the COVID-19 pandemic, Curia officials said on Thursday.

This has seen the Archdiocese of Malta resorting to savings from past surpluses since March, administrative secretary Michael Pace Ross told the media.

The closure of churches because of the pandemic had dried up donations and there was no income from the blessing of homes, he said.  

Meanwhile, Church homes for the elderly experienced a spike in spending due to the lockdown of employees and Dar tal-Providenza not only recorded a drop in donations in 2019, but also lost out on financial income from the annual volleyball marathon, which had to be cancelled.

Still, none of the 1,300 people employed by the Church were made redundant and those on probation were also retained. 

Pace Ross said that 2019 had seen an increase in the number of people employed at the Church's homes, mainly to conform with the state's new standards for care. The Church employed people of all creed and ethnicity at these homes, as long as they followed its ethos, he added. 

If things continue as is, the Church could, by the end of the year, register a loss of €6 million to €8 million according to its back-of-the-envelope estimates, Pace Ross said, appealing for donations

During the press conference he noted that in 2018 the Church had registered a deficit of €137,000, but in 2019 it recorded an increase in revenue of almost €6million, mainly due to an increase in capital gains and APS bank dividends.

Where did the Church spend its money?

The Archdiocese of Malta registered an increase in expenditure of €4.8million, 60% of which covered wages of the clergy and laity (€27.7million).

Another third were spent on operational and maintenance costs, including conservation and restoration of ecclesiastical heritage. 

The Church meanwhile paid more than €1.3million in taxes in 2019, and donated half a million to people in need.

According to data provided by Pace Ross, a quarter of its income (€12.2million) was made up of government contributions, while another fifth was collected through investment initiatives (€8.8million). 

Archbishop's Curia registered net deficit

The Archbishop's Curia, which is the Archdiocese's head office, reported a deficit of €31,000, a significant improvement compared to 2018's deficit of €1.38million.

Its revenue increased by €2.42million, mainly from investments, but expenditure also increased by €1.17million.

Remuneration to the clergy and lay employees  accounted for two fifths of this increase, mainly due to an increase in the staff complement.

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