Government’s consolidated fund reports €823.9m deficit in 2025

The government’s consolidated fund registered a deficit of €823.9 million in 2025.

According to national data published on Friday, recurrent revenue rose by €212.3 million last year, while total expenditure increased by €603.5 million.

The increase in expenditure outweighed that in recurrent revenue, leading to a negative change in the government’s consolidated fund by €391.2 million.

The largest increase in revenue was recorded in social security contributions.

By the end of the year, government debt totalled €11,360.4 million - €892.8 million higher than in 2024.

€212.3 million higher revenue

The National Statistics Office said in a statement that between January and December, the recurrent revenue amounted to €8,071.9 million - €212.3 million higher than the figure reported a year earlier.

The largest increases were recorded under social security (€147.8 million), Value Added Tax (€88.9 million) and licences, taxes and fines (€66.0 million).

On the other hand, drops in revenue were reported under grants (€97.2 million) and income tax (€50.5 million).

Total expenditure for 2025 stood at €8,895.8 million - €603.5 million higher than the previous year.

Increase of €595.4 million expenditure 

During the reference period, recurrent expenditure totalled €7,485.7 million, an increase of €595.4 million compared to the €6,890.3 million reported the year prior.

The main contributor to this increase was a €237.4 million rise reported under programmes and initiatives.

Further increases were also recorded under contributions to government entities (€153.1 million), personal emoluments (€124.3 million) and operational and maintenance expenses (€80.5 million).

The main developments in the programmes and initiatives category involved higher outlays towards social security benefits (€142.7 million), EU own resources (€34.2 million) and the domestic battery storage scheme (€13.0 million).

The interest component of the public debt servicing costs totalled €296.6 million - an increase of €35.2 million when compared to the previous year.

Government capital spending

In 2025, the government’s capital spending amounted to €1,113.5 million - €27 million lower than in 2024.

Lower spending was registered under energy infrastructure (€112.1 million), infrastructural investment programme (€71.9 million) and road construction and improvements (€35.9 million).

On the other hand, increased outlay was reported on the development of a second electricity interconnector (€85.4 million), Investment incentives (€29.1 million) and the RePowerEU initiative (€25.7 million).

€823.9 million deficit

The difference between total revenue and expenditure resulted in a deficit of €823.9 million being reported in the government’s consolidated fund in 2025 - a €391.2 million rise from the €432.7 million deficit registered the prior year.

This difference mirrors an increase in total recurrent revenue (€212.3 million), offset by a higher rise in total expenditure, which consists of recurrent expenditure (€595.4 million), interest (€35.2 million) and capital expenditure (-€27.0 million).

At the end of 2025, central government debt stood at €11,360.4 million - an increase of €892.8 million when compared to 2024.

The increase reported under Malta Government Stocks (€892.8 million) was the main contributor to the rise in debt.

Higher debt was also reported under treasury bills (€108.6 million) and Euro coins issued in the name of the treasury (€4.9 million).

This increase in debt was partially offset by drops in 62+ Malta Government Savings Bond (€38.3 million) and foreign loans (€2.3 million).

Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €73.0 million.