Government finance data shows sharp narrowing of the deficit

The government had slashed its deficit to €65.5 million by the end of April compared to €261.4 million in the previous year, official data for January to April, issued on Wednesday shows. But government debt rose by €1,139.0 million to €11,974.2 million and debt servicing costs totalled €105.0 million, an increase of €10.7 million when compared to the previous year. 

The National Statistics Office said that between January and April 2026, recurrent revenue amounted to €2,855.7 million, €635.7 million higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€347.5 million), Value Added Tax (€102.0 million) and Grants (€100.4 million). Lower revenue was recorded under Fees of Office (€8.5 million), Dividends on Investment (€5.1 million) and Sales – Others (€1.6 million).

Total expenditure by the close of April 2026 stood at €2,921.1 million, €439.8 million higher than the previous year.

A snapshot of government finances. NSO graphic.

During the reference period, Recurrent Expenditure totalled €2,578.6 million, an increase of €359.4 million compared to the €2,219.2 million reported the year prior. The main contributor to this increase was a €191.8 million rise reported under Programmes and Initiatives. Further increases were also recorded under Contributions to Government Entities (€65.9 million), Personal Emoluments (€59.9 million), and Operational and Maintenance Expenses (€41.7 million).

The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€60.6 million), Medicines and surgical materials (€17.0 million) and Energy support measures (€16.6 million).

The interest component of the public debt servicing costs totalled €105.0 million, an increase of €10.7 million when compared to the previous year.

Capital expenditure

By the end of April 2026, the government’s capital spending amounted to €237.6 million, €69.7 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards Road construction and improvements (€19.6 million), Development of a second electricity interconnector (€14.4 million) and Property, Plant and Equipment (€11.8 million).

The rise in spending was partially offset by drops recorded under the Investment Incentives (€15.1 million) and Investments in Physical Assets (Agricultural EU funds) (€6.0 million).

The difference between total revenue and expenditure resulted in a deficit of €65.5 million in the Consolidated Fund at the end of April 2026, compared to the €261.4 million deficit registered the previous year. 

This difference, the NSO explained, mirrors an increase in total Recurrent Revenue (€635.7 million), coupled with a lower rise in total expenditure, which consists of Recurrent Expenditure (€359.4 million), Interest (€10.7 million) and Capital Expenditure (€69.7 million).

Government debt

At the end of April 2026, Central Government debt stood at €11,974.2 million, an increase of €1,139.0 million when compared to 2025. The increase reported under Malta Government Stocks (€942.4 million) was the main contributor to the rise in debt. Higher debt was also reported under Treasury Bills (€249.9 million) and Euro coins issued in the name of the Treasury (€5.4 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 €18.7 million.

Data exposes opposition leader's 'lie' - PL

The Labour Party in a reaction, noted that publication of the NSO data had been delayed by a week because the due publication date would have fallen on the 'day of silence' before the general election.

The PL said that when the NSO announced its decision to delay publication, Opposition leader Alex Borg 'lied' when he said that the delay showed that the government had something to hide.

"Not only has the government’s financial situation not worsened, but the deficit in the Consolidated Fund in April was less than €66 million, or €196 million less than the same month a year earlier. The result achieved in April was the third best ever recorded. In the same period in 2012, the deficit was four times that observed this year," the PL said.

It said Borg should withdraw the unprecedented attack he made on the NSO.