Ongoing attempts by the Ministry of Finances to rebalance the budget by reducing the deficit seem to be encountering difficulties as government’s expenditure keeps soaring. According to the latest NSO statistics, compared to the period of January to June of last year, the Government’s Consolidated Fund, which serves as the central government’s main expense account, has registered an increase of revenue of just €69 million amounting to a just 2% increase with a total of €3.47 billion. On the other hand, expenditure increase of up to €437.2 million with a total increase of up to 12.5% and a total expenditure of up to €3.93 billion.
The increases mainly came from the government’s initiatives (Programmes and Initiatives) with an increase of up to €169.3 million, government and public salaries that increased by up to €104.0 million, contributions to government entities that increased by €66.5 million and Operational and Maintenance Expenses that increased by €39.2 million. Revenues increased mainly from social security and pension contributions rising up to €80.7 million, customs and excise duties increasing by €39.6 million and income tax contributions increasing by €26.8 million. Decreases were noted in grants (€86.6 million), Value Added Tax (€18.2 million) and miscellaneous receipts (€10.6 million). Capital spending has increased by €41.3 million amounting to €341.4 million in total compared to last year.
The government registered a total deficit of €457.4 million in the Government’s Consolidated Fund at the end of June 2025, in comparison to a deficit of €89.9 million registered by the close of June 2024: an increase of up to 408.79%. Most of this increase is registered as recurrent expenditure (€379.0 million), followed by Capital Expenditure (€41.3 million) and interest on debt (€17.0 million). Total government debt has increased by €11 billion and an increase of up to €1 billion compared to 2024.
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