€95m budget deficit in February, down from €151.4m surplus a year ago

Updated 2.25pm with PN reaction

The government had a deficit of €95 million at the end of last month from a surplus of €151.4 million in February 2024, NSO figures issued on Monday show.

The National Statistics Office said that compared to February 2024, recurrent revenue fell by €103.8 million while total expenditure increased by €142.6 million. The increase in expenditure, coupled with lower revenue, led to a negative change in the Government’s Consolidated Fund by €246.4 million.

The largest drop in revenue was recorded under Income Tax (€179.0 million), while Programmes and Initiatives (€63.3 million) reported the biggest increase among the expenditure categories.

As of end February 2025, Central Government Debt totalled €10,935.2 million, €859.1 million higher than the corresponding month in 2024.

A surplus in February last year has become a deficit. NSO graphic.

Recurrent Expenditure totalled €1,087.9 million, an increase of €160.0 million compared to the €927.9 million reported the year prior. The main contributor to this increase was a €63.3 million rise reported under Programmes and Initiatives. Further increases were also recorded under Contributions to Government Entities (€57.1 million), Personal Emoluments (€31.3 million) and Operational and Maintenance Expenses (€8.3 million). The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€31.8 million), Church schools (€9.6 million) and EU own resources (€7.4 million).

The interest component of the public debt servicing costs totalled €47.4 million, an increase of €6.2 million when compared to the previous year.

€14.4 million less spent on the roads

The NSO said that by the end of February 2025, the government’s capital spending amounted to €38.6 million, €23.6 million lower than the comparative period in 2024. Lower spending was registered under Road construction and improvements (€14.4 million), Property, plant and equipment (€5.3 million) and Maritime facilities (€3.9 million).

Surplus turns to deficit

The difference between total revenue and expenditure resulted in a deficit of €95.0 million being reported in the Government’s Consolidated Fund at the end of February 2025, in comparison to a €151.4 million surplus registered by the close of February 2024.

"This difference mirrors a decline in total Recurrent Revenue (€103.8 million), combined with a rise in total expenditure, which consists of Recurrent Expenditure (€160.0 million), Interest (€6.2 million) and Capital Expenditure (-€23.6 million)" the NSO said.

At the end of February 2025, Central Government debt stood at €10,935.2 million, an increase of €859.1 million when compared to 2024. The increase reported under Malta Government Stocks (€842.5 million) was the main contributor to the rise in debt.

Higher debt was also reported under Treasury Bills (€73.9 million) and Euro coins issued in the name of the Treasury (€4.0 million). This increase in debt was partially offset by drops in the 62+ Malta Government Savings Bond (€25.7 million) and Foreign Loans (€0.1 million).

Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €35.4 million, the NSO said.

'Abela, Caruana break yet another debt record': PN

Reacting to the NSO data, the PN said that while offering no solutions to Malta’s and Gozo’s major problems including environmental destruction, traffic congestion, the rising cost of living, infrastructure, education and health, Prime Minister Robert Abela and Finance Minister Clyde Caruana have succeeded in breaking the record for the highest debt Malta has ever seen.

In a statement, the Opposition's spokesperson for finance Graham Bencini and shadow minister for the economy Jerome Caruana Cilia said Abela was responsible for half the country’s €10.9 billion debt, with little to nothing to show for it.

"When Abela succeeded Joseph Muscat, Malta’s debt stood at just over €5 billion. This means that in five years, Abela has managed to more than double the country’s debt.

"In the past year alone, Abela racked up €859 million in debt; which is €2.3 million per day. Abela has become synonymous with debt, and there is nothing to show for all of it."

The two said the government had continued to "squander taxpayers’ money", and in February alone spent €89 million more than it did in February of last year.

"Of all this spending, very little, if anything, reached the people, while the inner circle continued to fatten up their pockets, as even Government insiders have admitted.

"This reckless spending has even led to a deficit of €95 million in the first two months of the year. This record level of debt has led to another record, the amount being paid in interest on this debt from taxpayers’ money. In fact, every day, the Maltese and Gozitans are now paying around €710,000 in interest alone," they added.