The government’s negative trend in public finances remained confirmed during the first half of 2026, with expenditure increasing by €687.1 million compared with a €681 million increase in recurrent revenue, according to the latest NSO statistics.
The government’s Consolidated Fund registered a deficit of €463.5 million between January and June 2026. This was €6.1 million higher than the €457.4 million deficit recorded during the same period last year.
Recurrent revenue reached €4.16 billion, an increase of 19.6% compared with the first six months of 2025. Total expenditure, however, rose by €687.1 million, or approximately 17.5%, to €4.62 billion. Although revenue grew faster in percentage terms, expenditure increased by a slightly larger amount in absolute terms, preventing the deficit from narrowing.
The largest increase in revenue came from income tax, which rose by €287.7 million. Grants increased by €156.8 million, while VAT revenue rose by €137.4 million.
Recurrent expenditure increased by €506.5 million to €3.95 billion. The largest rise was registered under Programmes and Initiatives, which increased by €262.2 million. Spending on social security benefits rose by €88.1 million, while expenditure on medicines and surgical materials increased by €25.7 million.
Personal emoluments increased by €82.6 million, contributions to government entities rose by €65.5 million, and operational and maintenance expenses increased by €96.3 million.
Capital expenditure recorded an even sharper increase of €165.9 million, or 48.6%, reaching €507.3 million. Higher spending included €49.1 million on the acquisition of property for public purposes, €18.6 million on property, plant and equipment, and €15 million on road construction and improvements.
Interest payments on government debt increased by €14.6 million to €158.5 million.
Central government debt reached €11.93 billion at the end of June, an increase of €936.6 million, or approximately 8.5%, compared with the same month last year. The increase was driven mainly by an additional €943 million in Malta Government Stocks and €128.4 million in Treasury Bills.
The Consolidated Fund figures are cash-based and do not represent the broader General Government balance used for EU fiscal surveillance. Previous quarterly data showed that the broader deficit may be substantially larger once accrual adjustments, extra-budgetary units and other transactions are included.
Newsroom
Leave a Reply