Government debt increases as PN warns it could reach 'new record' by 2028
Interest on debt servicing costs also at 'another record'
Government debt has increased to €11.4 billion, the latest figures revealed on Friday show as the Nationalist Party warned Labour’s policies could lead to a “new record” of over €14 billion by 2028.
At the end of last month, central government debt amounted to €11,444.6 million. This was €509.3 million higher than the corresponding month in 2025.
The National Statistics Office reported the government’s consolidated fund registered a surplus of €229.6 million in January and February. Recurrent revenue rose by €482.7 million compared to the previous year while total expenditure increased by €158.1 million.
The increase in recurrent revenue outweighed that in expenditure resulting in a €324.7 million uptick in the Government’s Consolidated Fund.
The largest increase in revenue in the first two months of the year came from Income Tax (€306.5 million), while the biggest expenditure increase was registered under Programmes and Initiatives (€75.6 million).
The interest of the public debt servicing costs now amounts to €51.3 million, an increase of €3.9 million when compared to the previous year.
Reacting to the statistics, the PN said the high level of "unchecked"debt means that “since becoming prime minister, Robert Abela has accumulated more debt than all previous prime minister, both Labour and Nationalist, combined”.
They also pointed out at “another record” which is rising – the interest paid to service government debt.
“According to the Government’s projections in Budget 2026, this year the Maltese people are expected to pay between €340 million and €350 million in interest on public debt – equivalent to around €1 million per day in interest alone,” the Opposition said.
“The Government is continuing to increase debt despite the fact that it is now widely recognised that nothing is being done to address the country’s most pressing problems, including the rising cost of living, ongoing infrastructure issues, persistent traffic congestion, pollution in our seas, and ever-lengthening queues in hospitals.”