Government debt rises to €11.3 billion – NSO

At the end of January, Central Government debt stood at €11,374.5 million, an increase of €811.9 million when compared to 2025, the NSO said Friday

The increase reported under Malta Government Stocks (€892.8 million) was the main contributor to the rise in debt. Higher debt was also reported under Euro coins issued in the name of the Treasury (€4.8 million).

This increase in debt was partially offset by a drop in the 62+ Malta Government Savings Bond (€38.2 million), Treasury Bills (€20.4 million) and Foreign Loans (€2.3 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €24.9 million.

By the end of January, the government’s Consolidated Fund reported a deficit of €151.7 million.

In January, Recurrent Revenue amounted to €493.5 million, €97.7 million higher than the figure reported a year earlier. The largest increases were recorded under Value Added Tax (€60.1 million), Grants (€20.4 million) and Licences, Taxes and Fines (€6.7 million). On the other hand, lower revenue was recorded under Fees of Office (€2.8 million) and Sales – Services (€1.3 million).

Total expenditure during January stood at €645.1 million, €63.7 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €584.4 million, an increase of €37.8 million compared to the €546.6 million reported the year prior. The main contributor to this increase was a €19.3 million rise reported under Programmes and Initiatives. Further increases were also recorded under Personal Emoluments (€10.8 million), Operational and Maintenance Expenses (€6.5 million), and Contributions to Government Entities (€1.2 million).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€15.1 million), Medicines and surgical materials (€8.8 million) and Allocation to regional committees (€5.4 million).

The interest component of the public debt servicing costs totalled €22.9 million, a decrease of €0.1 million when compared to the previous year.

By the end of January, government’s capital spending amounted to €37.8 million, €26 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards the Road construction and improvements (€8.7 million), ICT core services agreement (€6.3 million) and Upgrade of AFM infrastructure and equipment (€1.5 million).

The difference between total revenue and expenditure resulted in a deficit of €151.7 million being reported in the Government’s Consolidated Fund at the end of January, a €34 million drop in comparison to the €185.7 million deficit registered by the close of January 2025. This difference mirrors an increase in total Recurrent Revenue (€97.7 million), coupled with a lower rise in total expenditure, which consists of Recurrent Expenditure (€37.8 million), Interest (-€0.1 million) and Capital Expenditure (€26 million).