Government debt climbs to €11.84 billion by end of May

Updated 1.35pm with PN reaction

Government debt totalled €11,840.9 million at the end of May - €956.6 million higher than the corresponding month in 2025, according to the National Statistics Office.

The data also shows that by the end of the month, the government’s consolidated fund registered a deficit of €178.0 million.

Recurrent revenue rose by €517.5 million while total expenditure increased by €549.4 million.

Higher revenue

Between January and May 2026, recurrent revenue amounted to €3,527.1 million, €517.5 million higher than the figure reported a year earlier. The largest increases were recorded under income tax (€261.4 million), VAT (€106.5 million) and grants (€90.8 million).

On the other hand, lower revenue was recorded under miscellaneous receipts (€15.4 million), dividends on investment (€8.3 million) and fees of office (€4.9 million).

Higher expenditure

Total expenditure by the close of May 2026 stood at €3,705.1 million, €549.4 million higher than the previous year.

During the reference period, recurrent expenditure totalled €3,182.2 million, an increase of €369.6 million compared to the €2,812.6 million reported the year prior.

The main contributor to this increase was a €209.0 million rise reported under Programmes and Initiatives and included higher outlays towards social security benefits (€73.6 million), medicines and surgical materials (€23.0 million) and EU own resources (€15.8 million).

Expenditure by category. Source: NSO

Further increases were also recorded under personal emoluments (€68.9 million), operational and maintenance expenses (€49.1 million), and contributions to government entities (€42.6 million).

The interest component of the public debt servicing costs totalled €127.7 million, an increase of €9.9 million when compared to the previous year.

More spending

By the end of May 2026, the government’s capital spending amounted to €395.2 million - €169.9 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards the acquisition of property for public purposes (€48.7 million), development of a second electricity interconnector (€26.9 million) and property, plant and equipment (€18.9 million).

The rise in spending was partially offset by drops recorded under the Investments in physical assets (agricultural EU funds) (€6.0 million) and investment incentives (€5.0 million).

Recurrent revenue by category. Source: NSO

The difference between total revenue and expenditure resulted in a deficit of €178.0 million being reported in the government’s consolidated fund at the end of May 2026, in comparison to the €146.1 million deficit registered the year prior, the NSO said.

This difference mirrors an increase in total recurrent revenue (€517.5 million), offset by a higher rise in total expenditure, which consists of recurrent expenditure (€369.6 million), interest (€9.9 million) and capital expenditure (€169.9 million).

Increase in debt

At the end of May 2026, government debt stood at €11,840.9 million, an increase of €956.6 million when compared to 2025. The increase reported under Malta Government Stocks (€943.0 million) was the main contributor to the rise in debt.

Consolidated fund surplus / deficit. Source: NSO

Higher debt was also reported under treasury bills (€74.5 million) and euro coins issued in the name of the treasury (€5.6 million).

This increase in debt was partially offset by a drop in the 62+ Malta Government Savings Bond (€37.7 million) and Foreign Loans (€2.3 million).

Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €26.5 million.

'People continue paying more in interest': PN 

Reacting, PN said the figures once again showed that, when compared to the same month last year, the debt with which the PL government was burdening the country had continued to increase, reaching new records.

"This figure of almost €12 billion in debt at the end of last month is equivalent to more than €29,200 in debt for every Maltese and Gozitan citizen. It also means that, in one year, debt increased by almost €1 billion (€957 million) when compared with the same month in 2025 - an increase of 9%.

"Half of this €1 billion in debt in one year was incurred in April alone, that is, in the final month before the election," Adrian Delia and Darren Carabott said in a statement. 

The PN had claimed last month that the government borrowed €1 billion between March and April. The claim prompted the European Central Bank to revise and clarify its reported figures for Malta.

Delia and Carabott said NSO figures "continue to confirm that PL was increasing debt at the same pace as during the pandemic. This is undermining the sustainability of our country’s debt," they added.

They said that the "high level of debt with which Robert Abela has burdened the people means that, since becoming Prime Minister, he has managed to borrow more than all the prime ministers before him combined".

They warned that debt will continue to accelerate in the coming years and by 2028, Malta will reach a new record of more than €14 billion, "as announced by the Minister for Finance himself in the last budget".

This meant that while Abela had already doubled the debt accumulated by those before him, within two years, he would have tripled the debt, Delia and Carabott said.