The National Statistics Office issued its latest government debt figures for 2024 under the Maastricht Treaty guidelines. It announced that government debt was 3.7% of GDP and the total deficit was at €825.3 million. These figures contrast with the figures issued last January because according to the Maastricht Treaty government balances are calculated with an accrual-accounting system rather than with a cash-based system. An accrual accounting systems factors in all pending payments and outstanding obligations while a cash-based system only records effective transactions.
The government is exceeding the deficit threshold of the Maastricht regulations by 0.7% but it has been making progress along the years in reducing the gap. General government debt stands at 47.9% of the GDP well below the 60% threshold.
The Finance Minister Clyde Caruana has been campaigning for financial austerity with government finances and aims to cut fuel and electricity subsidies completely. Fuel and electricity subsidies, along with other Covid subsidies have substantially increased government expenditure . Newly elected President of the Chamber of Commerce, William Spiteri Bailey, recently stated that electricity and fuel subsidies should be targeted in their distribution, rather than being equally applied to all consumers. Expenditure on other items has also increased under the Abela administration.
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