Government debt surpasses €11 billion – NSO

At the end of July 2025, Central Government debt stood at €11,162.4 million, an increase of €1,392.7 million when compared to 2024, the NSO said Friday.

The increase reported under Malta Government Stocks (€1,291.4 million) was the main contributor to the rise in debt. Higher debt was also reported under Treasury Bills (€81.7 million), Foreign Loans (€77.7 million) and Euro coins issued in the name of the Treasury (€3.8 million). This increase in debt was partially offset by a drop in the 62+ Malta Government Savings Bond (€38.5 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €23.5 million.

At the end of the same month, the Government’s Consolidated Fund reported a deficit of €18.0 million.

Between January and July 2025, Recurrent Revenue amounted to €4,103.2 million, €13.7 million higher than the figure reported a year earlier. The largest increases were recorded under Social Security (€98.4 million), Customs and Excise Duties (€33.7 million) and Licenses, Taxes and Fines (€24.7 million). On the other hand, lower revenue was recorded under Grants (€101.2 million), Value Added Tax (€44.3 million) and Income Tax (€21.6 million).

Total expenditure from January to July 2025 stood at €4,621.1 million, €592.0 million higher than the previous year.

During the reference period, Recurrent Expenditure totalled €4,009.3 million, an increase of €472.3 million compared to the €3,537.0 million reported the year prior. The main contributor to this increase was an €218.1 million rise reported under Programmes and Initiatives. Further increases were also recorded under Personal Emoluments (€117.0 million), Contributions to Government Entities (€95.4 million) and Operational and Maintenance Expenses (€41.8 million).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€91.9 million), Church schools (€21.7 million) and Energy support measures (€16.5 million).

The interest component of the public debt servicing costs totalled €168.1 million, an increase of €20.4 million when compared to the previous year.

By the end of July 2025, Government’s capital spending amounted to €443.8 million, €99.3 million higher than the comparative period in 2024. Higher outlay was, among others, reported towards the Development of a second electricity interconnector (€73.5 million), the RePowerEU initiative (€18.7 million) and Investment incentives (€14.9 million).

The difference between total revenue and expenditure resulted in a deficit of €518.0 million being reported in the Government’s Consolidated Fund at the end of July 2025, in comparison to a €60.3 million surplus registered by the close of July 2024. This difference mirrors an increase in total Recurrent Revenue (€13.7 million), coupled with a higher rise in total expenditure, which consists of Recurrent Expenditure (€472.3 million), Interest (€20.4 million) and Capital Expenditure (€99.3 million).