VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s public finances deteriorated sharply in the first nine months of 2025, with the Consolidated Fund registering a deficit of €253.1 million compared to a surplus of €142.3 million a year earlier, according to figures released by the National Statistics Office.
The €395 million swing marks a dramatic reversal driven by surging expenditure that far outpaced revenue growth. Government spending between January and September rose by €565 million, or 10.6%, reaching €5.9 billion, while revenue increased by only 3.1% to €5.7 billion.
Recurrent expenditure jumped by €464.8 million to €5.1 billion, led by a €189 million rise in Programmes and Initiatives, including higher social security benefits, payments to church schools, and EU contributions.
Public sector wages grew by €133.3 million following last year’s collective agreement, while contributions to government entities and maintenance costs also rose. Interest payments on public debt climbed by €27.2 million to €221.5 million.
Capital spending increased to €583.5 million, boosted by investments in a second electricity interconnector and the RePowerEU programme, though road and electric vehicle projects saw cuts.
Government debt reached €11.1 billion by September, up nearly 11% year-on-year.
Despite the deterioration, Finance Minister Clyde Caruana said the 2025 deficit should remain around 3.3% of GDP, slightly lower than last year, with Malta on track to exit the EU’s Excessive Deficit Procedure by 2026.
Prime Minister Robert Abela defended the government’s spending stance, citing stable energy prices as key to protecting households and businesses.
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