Updated 5pm with PN reaction
At the end of January, government’s Consolidated Fund registered a deficit of €185.7 million, the National Statistics Office reported on Friday.
Central government debt totalled €10,562.5 million in January, €803.1 million higher than the same month last year.
Recurrent revenue fell by €50.2 million compared to the previous year, while total expenditure increased by €53.1 million.
The increase in expenditure, coupled with lower revenue, lead to a negative change in the government’s Consolidated Fund by €103.4 million.
The largest drop in revenue was recorded under Value Added Tax (€44.5 million), while contributions to government entities (€29.9 million) reported the biggest increase among the expenditure categories.
Expenditure by main category. Source: NSOHigher contributions were, among others, made towards the Malta College of Arts, Science and Technology (€11.3 million), Aġenzija Sapport (€6.8 million) and Court Services Agency (€6.3 million). Further increases were also recorded under Programmes and Initiatives (€20.8 million) and Personal Emoluments (€13.8 million). Meanwhile, Operational and Maintenance Expenses dropped by €5.3 million.
There were also higher outlays towards social security benefits (€7.6 million), EU own resources (€5.8 million) and Child Care for All scheme (€4.3 million).
There was less spending on road construction and improvements (€6.9 million), maritime facilities (€2.9 million) and property, plant and equipment (€2.7 million).
The drop in capital was partially offset by increases exhibited under National Identity Management Systems (€1.6 million) and Film Industry Incentives (€1.3 million).
PN reacts: 'Abela responsible for half the debt'
Reacting, the PN said Prime Minister Robert Abela was responsible for half of the €10.5 billion debt, with little to show for it.
"Our country had a debt of just over €5 billion when Abela replaced Joseph Muscat, meaning the debt under Abela has more than doubled. Abela signifies public debt.
"In the past year, Abela registered €803 million of public debt! The Labour government continues to squander tax money by dishing out direct orders to the inner circle of friends with a €50 million increase in expenses when comparing January 2025 to January 2024."
PN said this record debt was leading to another record – the amount of interest the country pays daily now exceeds €710,000.
The substantial increase in debt did not offer stability and peace of mind, the party warned.