Malta’s government debt has risen to €11.2 billion, despite registering a surplus of €82.6 million in the third quarter of 2025. This surplus is attributed to a €151.5 million year-on-year increase in total revenue, reaching €2.17 billion, which outpaced the €80.7 million rise in total expenditure to €2.08 billion. However, the broader trend indicates that rising government expenditure and an ongoing budget deficit remain challenging, with the Consolidated Fund recording a €474.3 million deficit by the end of November.
The increase in government debt is a concern, as it stands at approximately 46.5% of GDP. The government’s fiscal policy aims to ease the deficit from 3.7% of GDP in 2024 to about 3.3% in 2025 and further to 2.8% in 2026. However, actual data suggests the gap may remain more stubborn than forecast.
