At end July 2026, Government’s Consolidated Fund reported a deficit of €552.2 million
Total expenditure by the close of July 2026 stood at €5,372.7 million, €751.6 million higher than the previous year
by Paul Cocks
By the end of July 2026, the Government’s Consolidated Fund reported a deficit of €552.2 million.
Between January and July 2026, Recurrent Revenue amounted to €4,820.5 million, €717.3 million higher than the figure reported a year earlier, National Statistics Office data shows. The largest increases were recorded under Income Tax (€362.8 million), Value Added Tax (€153.3 million) and Grants (€110.3 million). On the other hand, lower revenue was recorded under Fees of Office (€25.2 million), Sales – Others (€8.1 million) and Reimbursements (€0.7 million).
Total expenditure by the close of July 2026 stood at €5,372.7 million, €751.6 million higher than the previous year.
During the reference period, Recurrent Expenditure totalled €4,561.7 million, an increase of €552.4 million compared to the €4,009.3 million reported the year prior. The main contributor to this increase was a €272.4 million rise reported under Programmes and Initiatives. Further increases were also recorded under Operational and Maintenance Expenses (€108.6 million), Personal Emoluments (€95.8 million), and Contributions to Government Entities (€75.6 million).
The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€98.9 million), Medicines and surgical materials (€31.5 million) and EU own resources (€25.6 million).
The interest component of the public debt servicing costs totalled €190.1 million, an increase of €22.0 million when compared to the previous year.
By the end of July 2026, Government’s capital expenditure amounted to €621.0 million, €177.2 million higher than the comparative period in 2025. Higher outlay was, among others, reported towards Property, Plant and Equipment (€67.3 million), Acquisition of property for public purposes (€48.1 million) and Road construction and improvements (€14.7 million). The rise in spending was partially offset by drops recorded under the Investments in Physical Assets (Agricultural EU funds) (€12.7 million) and the Development of a second electricity interconnector (€8.6 million).
The difference between total revenue and expenditure resulted in a deficit of €552.2 million being reported in the Government’s Consolidated Fund at the end of July 2026, in comparison to the €518.0 million deficit registered the prior year. This difference mirrors an increase in total Recurrent Revenue (€717.3 million), offset by a higher rise in total expenditure, which consists of Recurrent Expenditure (€552.4 million), Interest (€22.0 million) and Capital Expenditure (€177.2 million).
At the end of July 2026, Central Government debt stood at €11,702.7 million, an increase of €540.3 million when compared to 2025. The increase reported under Malta Government Stocks (€334.7 million) was the main contributor to the rise in debt. Higher debt was also reported under Treasury Bills (€305.1 million) and Euro coins issued in the name of the Treasury (€5.3 million). This increase in debt was partially offset by a drop in Foreign Loans (€80.1 million) and in the 62+ Malta Government Savings Bond (€5.2 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €19.4 million.
