The government’s finances for 2025 have seen a break from the fiscal responsible trend that safeguarded public finances in 2023 and 2024 following the massive splurge in energy and other subsidies. According to the latest statistics by the NSO, the government’s final deficit for this year until October was of €373.9 million.
Compared to the previous year, total expenditure increased by €728.5 million with a total of up to €5.85 billion leaving a negative change in the Government’s Consolidated Fund by €470.6 million.
Between January and October 2025, Recurrent Revenue amounted to €6.38 billion, €257.9 million higher than the same period of last year. The largest increases were recorded under Social Security (€134.6 million), Income Tax (€56.3 million) and Licences, Taxes and Fines (€47.8 million). On the other hand, lower revenue was recorded under Grants (€56.1 million), Miscellaneous Receipts (€11.6 million) and Interest on loans made by Government (€0.2 million).
Debt stood at €11.1 billion. Interest on debt payments increased by up to €27.7 million amounting to €242 million. Capital expenditure was €33.4 million higher this year amounting up to €654.4 million, mainly due to the ongoing expenditure on the second interconnector-cable.
Increased expenditures in recurrent expenditure were registered in social security benefits (€117.7 million), EU funding (€44.1 million) and Church schools (€32.4 million). The government is increasingly spending more on pensions.
The government’s rate of tax collection has also waned down compared to last year but the government still plans to move closer to a budgetary surplus by next year.
Malta had strong economic growth this year but this was buoyed by increasing government expenditure.
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