The increase in the public deficit has continued to accelerate this year as government expenditure rises faster than revenue, with higher spending on energy-subsidies, social benefits and other recurrent expenditure.
According to the latest figures published by the NSO, by the end of August government expenditure had reached €6.13 billion, €896.4 million higher than during the same period last year, representing an increase of around 17.1%.
Government recurrent revenue increased by €723.6 million to €5.75 billion, equivalent to a year-on-year increase of around 14.4%. The largest increase in revenue came from income tax, which rose by €397.6 million, followed by VAT revenue, up €146.6 million, and Social Security contributions, which increased by €81.2 million.
Expenditure rose mainly through recurrent spending, which increased by €687.2 million to €5.23 billion. Spending under Programmes and Initiatives alone increased by €374.2 million, driven in part by an additional €109.7 million in social security benefits, €39.2 million in EU own resources and €38.1 million in energy-support measures.
Operational and maintenance expenditure also rose by €111.9 million, while spending on personal emoluments increased by €106.1 million and contributions to government entities rose by €95 million.
Capital expenditure increased substantially as well, rising by €183.1 million to €673.1 million during the first eight months of the year. Interest payments on public debt reached €218.6 million, €26.1 million higher than during the same period in 2025.
The deficit has continued worsening throughout the year.By the end of August, the Consolidated Fund deficit stood at €376.2 million, compared with €203.4 million during the same period last year — a deterioration of €172.8 million, or around 85%.
Central Government debt has now crossed the €12 billion mark, reaching €12.002 billion at the end of August. This was €864.1 million higher than a year earlier, an increase of around 7.8%. The largest increase came from Malta Government Stocks, which rose by €658.9 million, while Treasury Bills increased by €306.5 million.
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