According to the recent statistics released by the NSO, the government’s deficit in real terms in 2025 is set to increase with the government failing to keep up tax revenues with government expenditure. The Finance Minister plans to close the deficit with recurrent expenditure this year. Government’s deficit for 2024 was up to 3.5% of the GDP.
Government Finance Data for January–November 2025, shows that the Consolidated Fund recorded a €474.3 million deficit by the end of November, compared with a much smaller deficit of €102.5 million at the same point in 2024. Total recurrent revenue rose by €316.1 million to €7.14 billion, but this was more than offset by a €688 million increase in total expenditure, which climbed to €7.61 billion over the same period. As a result, government debt rose to €11.36 billion, almost €1 billion higher than a year earlier.
Figures show that expenditure increase has been broad-based. Significant year-on-year increases were recorded in government recurrent expenditure and public salaries. Capital spending also trended higher, with notable outlays on large infrastructure projects such as the development of a second electricity interconnector.
While recurrent revenue improved — driven by higher social security receipts and stronger returns from VAT and other taxes — it was insufficient to keep up with the expenditure pace.
Newsroom
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