VALLETTA (MNA/ITALPRESS) – Malta’s public finances took a sharp turn for the worse in July, with government debt climbing to Ç11.16 billion and a surplus of Ç60.3 million a year earlier flipping into a Ç518 million deficit. Figures released by the National Statistics Office reveal that while revenue between January and July edged up by just Ç13.7 million to Ç4.1 billion, expenditure ballooned by Ç592 million to Ç4.62 billion.
The result was a Ç578.3 million deterioration in the Consolidated Fund, raising questions about the sustainability of state spending. Recurrent expenditure alone jumped by Ç472 million to Ç4 billion. The steepest rise came in Programmes and Initiatives, up Ç218.1 million, much of it channelled into Social Security benefits, Church schools and energy subsidies. Personal Emoluments grew by Ç117 million, Contributions to Government Entities by Ç95.4 million and Operational and Maintenance Expenses by Ç41.8 million.
On the revenue side, Social Security contributions delivered the largest increase at Ç98.4 million, but this was far outpaced by spending pressures. The mounting deficit translated directly into higher borrowing. Debt rose by Ç1.39 billion compared with July 2024, fuelled mainly by a Ç1.29 billion surge in Malta Government Stocks. Smaller but still notable increases came from Treasury Bills (Ç81.7 million) and Foreign Loans (Ç77,7 million).
– Photo IPA Agency –
(ITALPRESS)
