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Malta: In the First Three Months of 2026, the Deficit Fell by 64.9% Compared to the First Quarter of 2025
By the end of March 2026, the Government’s Consolidated Fund reported a deficit of €84.3 million.
Between January and March 2026, Recurrent Revenue amounted to €2,044.7 million, €481.9 million higher than the figure reported a year earlier. The largest increases were recorded under Income Tax (€238.4 million), Grants (€99.7 million) and Value Added Tax (€97.4 million). On the other hand, lower revenue was recorded under Fees of Office (€12.5 million), Sales – Others (€1.6 million) and Dividends on Investment (€1.3 million).
Total expenditure by the close of March 2026 stood at €2,129.0 million, €325.7 million higher than the previous year.
During the reference period, Recurrent Expenditure totalled €1,891.0 million, an increase of €248.7 million compared to the €1,642.3 million reported the year prior. The main contributor to this increase was a €154.3 million rise reported under Programmes and Initiatives. Further increases were also recorded under Personal Emoluments (€41.7 million), Operational and Maintenance Expenses (€31.6 million), and Contributions to Government Entities (€21.1 million).
The main developments in the Programmes and Initiatives category involved higher outlays towards Social security benefits (€49.1 million), EU own resources (€26.3 million) and Energy support measures (€22.0 million).
The interest component of the public debt servicing costs totalled €79.1 million, an increase of €5.4 million when compared to the previous year.
By the end of March 2026, Government’s capital spending amounted to €158.9 million, €71.7 million higher than the comparative period in 2025. Higher outlays were reported, among others, towards the Development of a second electricity interconnector (€11.3 million), Road construction and improvements (€10.2 million) and the RePowerEU Initiative (€6.2 million). The rise in spending was partially offset by drops recorded under the Security Posture Programme (€2.9 million) and Land based management commitments (€2.6 million).
The difference between total revenue and expenditure resulted in a deficit of €84.3 million being reported in the Government’s Consolidated Fund at the end of March 2026, in comparison to the €240.4 million deficit registered a year earlier. This difference mirrors an increase in total Recurrent Revenue (€481.9 million), coupled with a lower rise in total expenditure, which consists of Recurrent Expenditure (€248.7 million), Interest (€5.4 million) and Capital Expenditure (€71.7 million).
At the end of March 2026, Central Government debt stood at €11,415.9 million, an increase of €621.8 million when compared to 2025. The increase reported under Malta Government Stocks (€443.1 million) was the main contributor to the rise in debt. Higher debt was also reported under Treasury Bills (€220.4 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 the 62+ Malta Government Savings Bond (€37.9 million) and Foreign Loans (€2.3 million) . Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €6.9 million.
