Government debt nears €11 billion – NSO

Malta’s debt has continued to climb, reaching nearly €11 billion by the end of February, the NSO said Monday.

At the end of February 2025, Central Government debt stood at €10,935.2 million, an increase of €859.1 million when compared to 2024.

The increase reported under Malta Government Stocks (€842.5 million) was the main contributor to the rise in debt. Higher debt was also reported under Treasury Bills (€73.9 million) and Euro coins issued in the name of the Treasury (€4.0 million). This increase in debt was partially offset by drops in the 62+ Malta Government Savings Bond (€25.7 million) and Foreign Loans (€0.1 million).

Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €35.4 million, the NSO said.

By the end of February 2025, the Government’s Consolidated Fund reported a deficit of €95.0 million.

Between January and February 2025, Recurrent Revenue amounted to €1,078.8 million, €103.8 million lower than the figure reported a year earlier. The largest drops were recorded under Income Tax (€179.0 million), Grants (€37.1 million) and Rents (€2.9 million). On the other hand, higher revenue was documented under Social Security (€34.1 million), Value Added Tax (€32.4 million) and Miscellaneous Receipts (€23.2 million).

Total expenditure from January to February 2025 stood at €1,173.9 million, €142.6 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €1,087.9 million, an increase of €160.0 million compared to the €927.9 million reported the year prior. The main contributor to this increase was a €63.3 million rise reported under Programmes and Initiatives. Further increases were also recorded under Contributions to Government Entities (€57.1 million), Personal Emoluments (€31.3 million) and Operational and Maintenance Expenses (€8.3 million). The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€31.8 million), Church schools (€9.6 million) and EU own resources (€7.4 million).

The interest component of the public debt servicing costs totalled €47.4 million, an increase of €6.2 million when compared to the previous year.

By the end of February 2025, Government’s capital spending amounted to €38.6 million, €23.6 million lower than the comparative period in 2024. Lower spending was registered under Road construction and improvements (€14.4 million), Property, plant and equipment (€5.3 million) and Maritime facilities (€3.9 million).

The difference between total revenue and expenditure resulted in a deficit of €95.0 million being reported in the Government’s Consolidated Fund at the end of February 2025, in comparison to a €151.4 million surplus registered by the close of February 2024. This difference mirrors a decline in total Recurrent Revenue (€103.8 million), combined with a rise in total expenditure, which consists of Recurrent Expenditure (€160.0 million), Interest (€6.2 million) and Capital Expenditure (-€23.6 million).