Government debt approaching €12 billion with a deficit of €463.5 million in the first half of 2026

Government debt is fast approaching €12 billion, having increased by €936.6 million compared with the first half of 2025.

This was confirmed in statistics published by the National Statistics Office (NSO), which show that between January and June this year, recurrent revenue amounted to €4.1 billion, an increase of €681 million compared with the same period last year.

The largest increases were recorded in Income Tax, which rose by €287.7 million, Grants, which increased by €156.8 million, and Value Added Tax (VAT), which was up by €137.4 million.

Total expenditure by the end of June stood at €4.6 billion, €687.1 million higher than in the previous year.

During the first half of this year, recurrent expenditure totalled €3.9 billion, an increase of €506.5 million compared with the same period last year. The main contributor to this increase was a €262.2 million rise in Programmes and Initiatives. Further increases were also recorded in operational and maintenance expenses, personal emoluments, and contributions to Government entities.

The difference between total revenue and expenditure resulted in a deficit of €463.5 million in the Government’s Consolidated Fund at the end of June 2026, compared with a deficit of €457.4 million recorded during the same period a year earlier.

At the end of June 2026, Central Government debt stood at €11.9 billion, an increase of €936.6 million compared with 2025. The increase in Malta Government Stocks, which amounted to €943 million, was the main contributor to the rise in debt.

Higher debt was also reported under Treasury Bills and euro coins issued in the name of the Treasury. This increase was partially offset by a €80.1 million drop in Foreign Loans and a €37.8 million decline in the 62+ Malta Government Savings Bond.

Moreover, higher holdings of Malta Government Stocks by Government funds resulted in a €22.7 million reduction in debt.

Earlier this month, economist JP Fabri said the increase in debt should not automatically be interpreted as a warning sign, arguing that Malta is not currently in such a position.