Government’s Consolidated Fund registered deficit of €457.4 million in first half of 2025
Total expenditure from January to June 2025 stood at €3,931.7 million, €437.2 million higher than the previous year
by Paul Cocks
During the first half of 2025, the Government’s Consolidated Fund reported a deficit of €457.4 million.
Between January and June 2025, Recurrent Revenue amounted to €3,474.2 million, €69.6 million higher than the figure reported a year earlier. The largest increases were recorded under Social Security (€80.7 million), Customs and Excise Duties (€39.6 million) and Income Tax (€26.8 million). On the other hand, lower revenue was recorded under Grants (€86.6 million), Value Added Tax (€18.2 million) and Miscellaneous Receipts (€10.6 million).
Total expenditure from January to June 2025 stood at €3,931.7 million, €437.2 million higher than the previous year.
During the reference period, Recurrent Expenditure totalled €3,446.4 million, an increase of €379.0 million compared to the €3,067.4 million reported the year prior. The main contributor to this increase was a €169.3 million rise reported under Programmes and Initiatives.
Further increases were also recorded under Personal Emoluments (€104.0 million), Contributions to Government Entities (€66.5 million) and Operational and Maintenance Expenses (€39.2 million).
The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€84.9 million), Church schools (€21.7 million) and Energy support measures (€15.7 million).
The interest component of the public debt servicing costs totalled €143.9 million, an increase of €17.0 million when compared to the previous year.
By the end of June 2025, Government’s capital spending amounted to €341.4 million, €41.3 million higher than the comparative period in 2024. Higher outlays were reported towards the Development of a second electricity interconnector (€48.6 million), the RePowerEU initiative (€16.5 million) and Investment incentives (€14.9 million). On the other hand, lower spending was registered under Road construction and improvements (€31.5 million), Enhancing uptake of electric vehicles (€21.4 million) and Property, plant and equipment (€3.6 million).
The difference between total revenue and expenditure resulted in a deficit of €457.4 million being reported in the Government’s Consolidated Fund at the end of June 2025, in comparison to a deficit of €89.9 million registered by the close of June 2024.
This difference mirrors an increase in total Recurrent Revenue (€69.6 million), coupled with a higher rise in total expenditure, which consists of Recurrent Expenditure (€379.0 million), Interest (€17.0 million) and Capital Expenditure (€41.3 million).
At the end of June 2025, Central Government debt stood at €10,992.7 million, an increase of €1,011.6 million when compared to 2024. The increase reported under Malta Government Stocks (€842.5 million) was the main contributor to the rise in debt. Higher debt was also reported under Treasury Bills (€116.0 million), Foreign Loans (€77.7 million) and Euro coins issued in the name of the Treasury (€3.7 million). This increase in debt was partially offset by drops in the 62+ Malta Government Savings Bond (€6.0 million).
Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €22.3 million.
