VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s government deficit fell significantly to €237.2 million, or 2.2% of GDP, by the end of 2025, according to national statistics, down from €750.4 million, or 3.4% of GDP, a year earlier.
Data released for the fourth quarter showed stronger revenue performance and reduced expenditure contributing to the improved fiscal position.
Between October and December, government revenue reached €2.46 billion, an increase of €311 million compared to the same period in 2024. The rise was driven largely by higher tax intake, particularly from production and imports, income and wealth, and social contributions.
Expenditure during the same period totalled €2.69 billion, marking a decline of €156.4 million year-on-year. The drop was mainly due to lower capital transfers, alongside reduced spending on wages and subsidies.
Adjustments to align public accounts with EU accrual-based standards further reduced the deficit by €333.6 million in the final quarter.
Government debt stood at €11.4 billion by December, equivalent to 46.4% of GDP, up from €10.6 billion a year earlier. The increase was primarily driven by higher long-term and short-term debt securities.
Meanwhile, guaranteed government debt fell to €905.6 million, or 3.7% of GDP.
Looking ahead, economic projections indicate gradual growth in GDP and a potential budget surplus by 2029 and 2030. However, these forecasts exclude the potential impact of a planned mass transport system.
Speaking at a press conference, Finance Minister Clyde Caruana said the project remains at feasibility stage and is unlikely to begin before the end of 2026, warning of the financial risks involved.
Prime Minister Robert Abela has pledged to prioritise the transport project after the next general election, though revised plans—now estimated to cost around €3 billion—have yet to be published.
– Photo DOI –
(ITALPRESS).
