According to the government’s latest financial reports on 2024, government revenue and expenditure were 58.05% and 67.07% higher respectively from 2019 figures. Malta’s average annual GDP growth rate from 2020 to 2024 is estimated at around 1.2% to 1.5% according to official figures.
Government finances took a hit during the Covid pandemic and subsequently with Russia’s invasion of Ukraine as the government issued multiple subsidies. The government is still subsidsing fuel and energy. Capital expenditure was higher in 2024 due to the government’s expenditure on the electricity-grid crisis.
Recurrent revenue increased by 22.56% from the previous year increasing from €6.4 billion to €7.8 billion. The largest increases according to the report were reported in Income Tax (€957.0 million), Value Added Tax (€182.4 million) and Social Security (€154.2 million). However, last year’s government’s expenditure increased at a slower pace compared to 2023 with expenditure increasing by 14.87% and hitting €8.3 billion in total, and €1 billion higher than previous year.
The government deficit came at 46% less than the previous year. The government deficit for 2024 was at €432.7 million, €373.2 million less from the €805.9 million figure of 2023. However, the cost of the debt increased by 22% when compared with 2023, totaling €261.4 million with an increase of €47.2 million.
The government’s finances are still buoyed with overspending, corruption and abuse of power, however the government seems to be successfully struggling in gradually decreasing the ratio between revenue and expenditure. Minister for Finances Clyde Caruana has repeatedly called for prudence and more austerity with government expenditure.
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