Government surplus turns to deficit in Q2 as debt rises by €1,010.3 million

The government had a financial deficit of €170.4m at the end of the second quarter of this year, compared to a surplus of €55.2 million in the same period last year. Government debt stood at €11,117.5 million, up by €1,010.3 million in a year. The total is equivalent to 46.9 per cent of Gross Domestic Product.

Between April and June total revenue amounted to €1,959.5 million, a decrease of €38.7 million compared with the same quarter in 2024. This was mainly brought about by decreases in current taxes on income and wealth (€98.5 million) and Property income receivable (€3.0 million). These were partially offset by increases in market output (€43.4 million), net social contributions (€8.6 million), taxes on production and imports (€7.0 million) and capital transfers receivable (€4.0 million), the National Statistics Office said. 

Total expenditure in the second quarter of 2025 reached €2,129.9 million, an increase of €170.4 million over the corresponding quarter in 2024. The largest increase was recorded in salaries (€69.9 million), followed by Intermediate consumption (€50.1 million), social benefits and social transfers in kind (€40.5 million), and subsidies (€32.9 million), while decreases were registered in current transfers payable (€65.3 million) and current taxes on income and wealth (€0.5 million).

NSO graphic.

Adjustments were implemented to the Government’s Consolidated Fund data to transition to accrual-based accounting, aligning with the requirements of ESA 2010. In the second quarter of 2025, these adjustments brought the Consolidated Fund deficit down by €46.6 million, from €217.0 million to €170.4 million.

At the end of June, General Government debt stood at €11,117.5 million, equivalent to 46.9 per cent of Gross Domestic Product.

This represented an increase of €1,010.3 million over the corresponding quarter in 2024, largely reflected in Central Government Debt, which amounted to €11,115.2 million.