Malta’s General Government deficit rose to €344.1 million in the second quarter of 2026, as government expenditure continued to grow faster than revenue, according to the latest figures published by the National Statistics Office (NSO).
The deficit recorded between April and June represents an increase of approximately €109.2 million, or 46.5%, compared with the €234.9 million deficit recorded in the corresponding quarter of 2025.
The deterioration comes despite an increase in government revenue, which was outpaced by a considerably larger increase in expenditure.
The annual deficit is estimated at 2.8% of GDP as of now, compared with 2.1% in 2025, representing an increase of 0.7 percentage points.
Total General Government revenue reached €2.18 billion in the second quarter of 2026, an increase of €212.3 million compared with the same period last year. The increase was mainly driven by current taxes on income and wealth, which rose by €141.2 million. Net social contributions increased by €32.4 million, capital transfers receivable rose by €27.8 million, and taxes on production and imports increased by €23 million. These gains were partly offset by a €30.4 million decline in market output.
However, total expenditure reached €2.52 billion, increasing by €321.5 million year-on-year. This means that expenditure grew by €109.2 million more than revenue, contributing to the widening deficit.
The largest increase in expenditure was recorded in intermediate consumption, which rose by €87.6 million. Compensation of employees increased by €60.8 million, while social benefits and social transfers in kind rose by €53.3 million. Capital transfers payable increased by a further €47.2 million.
General Government debt reached €11.98 billion at the end of June 2026, equivalent to 47% of GDP. This represents an increase of €890.7 million compared with the corresponding quarter last year.
The increase was largely reflected in Central Government debt, which stood at €11.98 billion. Long-term debt securities increased by €863.7 million year-on-year, while short-term debt securities rose by €128.8 million. Long-term loans decreased by €65.1 million.
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