VALLETTA (MALTA) (ITALPRESS/MNA) – Malta’s government recorded a deficit of €178 million during the first five months of 2026, widening by more than €30 million compared with the same period last year, according to National Statistics Office figures.

The increase came despite recurrent revenue reaching a record €3.53 billion, up 17.2% or €517.5 million, driven mainly by higher income tax and VAT receipts.

Total expenditure rose even faster to €3.71 billion, increasing by €549.4 million as capital investment and recurrent spending accelerated.

Capital expenditure climbed by €169.9 million to €395.2 million, reflecting investment in road projects, the second electricity interconnector with Sicily and hospital infrastructure.

Recurrent spending also increased by €369.6 million, largely due to higher social security benefits, healthcare costs and Malta’s contributions to the European Union.

Social protection remained the largest spending category at €1.24 billion, while health expenditure rose 21.6% to €501.7 million.

Interest payments on public debt totalled €127.7 million, or about €814,000 a day.

Central government debt reached €11.84 billion by the end of May, up €956.6 million from a year earlier, driven mainly by higher Malta Government Stocks.

Reacting to the figures, the Opposition said the government had borrowed more than all previous prime ministers combined, warning debt could exceed €14 billion by 2028. The government has defended its economic record, citing strong GDP growth, low unemployment and Malta’s exit from the EU’s Excessive Deficit Procedure.

– Photo Ipa Agency –
(ITALPRESS).

Source: medNews