VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s central government debt has surpassed €12 billion for the first time, rising by €864.1 million over the past year, according to figures published by the National Statistics Office.
Debt stood at €12,002.3 million at the end of August, compared with €11.14 billion a year earlier and €11.7 billion in July.
The increase was driven mainly by a €658.9 million rise in Malta Government Stocks and a €306.5 million increase in Treasury Bills.
These increases were partly offset by an €80.1 million fall in foreign loans and a €5.3 million decline in the 62+ Malta Government Savings Bond.
Meanwhile, the Consolidated Fund recorded a deficit of €376.2 million during the first eight months of 2026, compared with €203.4 million during the same period last year.
Recurrent revenue rose by €723.6 million year-on-year to €5.75 billion. Income tax generated an additional €397.6 million, while VAT receipts increased by €146.6 million and social security contributions by €81.2 million.
However, expenditure grew faster, reaching €6.13 billion, an increase of €896.4 million.
Recurrent expenditure rose by €687.2 million to €5.23 billion, with spending on programmes and initiatives accounting for the largest increase.
This included higher spending on social security benefits, EU own resources and energy support measures.
Capital expenditure also increased, reaching €673.1 million, while interest payments on public debt rose by €26.1 million to €218.6 million.
Despite the deterioration, Malta remains below the EU’s 3% deficit and 60% debt thresholds, with debt standing at 46.4% of GDP in the latest figures cited.
The Malta Fiscal Advisory Council has nevertheless warned that projected fiscal improvements could be more limited than expected, while the IMF has raised concerns about the sustainability of Malta’s labour-driven growth model.
– photo IPA Agency –
(ITALPRESS).
