Government debt edges closer to €12 billion – NSO

At the end of June, Central Government debt stood at €11,929.3 million, an increase of €936.6 million when compared to 2025, the NSO said Friday. The increase reported under Malta Government Stocks (€943 million) was the main contributor to the rise in debt. Higher debt was also reported under Treasury Bills (€128.4 million) and Euro coins issued in the name of the Treasury (€5.7 million).

This increase in debt was partially offset by a drop in Foreign Loans (€80.1 million) and in the 62+ Malta Government Savings Bond (€37.8 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €22.7 million, the NSO said.

By the end of June, the government’s Consolidated Fund reported a deficit of €463.5 million.

Between January and June, Recurrent Revenue amounted to €4,155.2 million, €681 million higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€287.7 million), Grants (€156.8 million) and Value Added Tax (€137.4 million). On the other hand, lower revenue was recorded under Fees of Office (€13.8 million), Reimbursements (€2.1 million) and Sales – Others (€0.9 million).

Total expenditure by the close of June stood at €4,618.7 million, €687.1 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €3,952.9 million, an increase of €506.5 million compared to the €3,446.4 million reported the year prior. The main contributor to this increase was a €262.2 million rise reported under Programmes and Initiatives. Further increases were also recorded under Operational and Maintenance Expenses (€96.3 million), Personal Emoluments (€82.6 million), and Contributions to Government Entities (€65.5 million).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€88.1 million), Medicines and surgical materials (€25.7 million) and EU own resources (€24.4 million).

The interest component of the public debt servicing costs totalled €158.5 million, an increase of €14.6 million when compared to the previous year.

By the end of June, government’s capital spending amounted to €507.3 million, €165.9 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards the Acquisition of property for public purposes (€49.1 million), Property, Plant and Equipment (€18.6 million) and Road construction and improvements (€15 million). The rise in spending was partially offset by drops recorded under the Investments in Physical Assets (Agricultural EU funds) (€5.3 million) and Investment Incentives (€5.1 million).

The difference between total revenue and expenditure resulted in a deficit of €463.5 million being reported in the government’s Consolidated Fund at the end of June, in comparison to the €457.4 million deficit registered the year prior. This difference mirrors an increase in total Recurrent Revenue (€681 million), offset by a higher rise in total expenditure, which consists of Recurrent Expenditure (€506.5 million), Interest (€14.6 million) and Capital Expenditure (€165.9 million).