Malta’s national debt surges to €12 billion as delayed NSO figures reveal borrowing spike

Malta’s national debt has climbed to almost €12 billion, according to figures released by the National Statistics Office (NSO), revealing a sharp increase in government borrowing that remained out of the public domain until after the general election.

The latest government finance data shows that by the end of April 2026, central government debt had reached €11.97 billion, an increase of €1.14 billion over the same period last year. The rise brings Malta’s debt to its highest level on record and pushes it to the brink of the €12 billion mark.

The publication of the figures is likely to reignite questions about transparency, given that the NSO had postponed the release of government finance statistics during the election campaign. The delay meant voters were unable to scrutinise the country’s latest debt and spending figures before heading to the polls.

Despite a strong increase in government revenue, borrowing continued to accelerate.

Between January and April, recurrent revenue reached €2.86 billion, up by €635.7 million over the same period in 2025. The largest increase came from income tax receipts, which rose by €347.5 million, while VAT generated an additional €102 million and grants increased by €100.4 million.

However, government expenditure continued to grow rapidly. Total spending reached €2.92 billion by the end of April, €439.8 million higher than a year earlier.

Recurrent expenditure rose by €359.4 million to €2.58 billion, driven largely by increased spending on social benefits, healthcare, energy subsidies and government entities.

The biggest rise was recorded under programmes and initiatives – mostly related to election handouts, which increased by €191.8 million.

Social security benefits accounted for an additional €60.6 million, while spending on medicines and surgical materials rose by €17 million. Energy support measures cost taxpayers a further €16.6 million during the first four months of the year.

Contributions to government entities increased by €65.9 million, while spending on public sector wages rose by €59.9 million.

The government’s interest bill also continued to climb, reaching €105 million, an increase of €10.7 million over the previous year as the cost of servicing Malta’s growing debt burden increased.

Capital expenditure rose by €69.7 million to €237.6 million.

Significant spending was directed towards road construction and upgrades, which increased by €19.6 million. Works related to the second electricity interconnector accounted for a further €14.4 million.

Although the government’s deficit narrowed substantially to €65.5 million compared to €261.4 million during the same period last year, the figures nevertheless underline the state’s continuing dependence on borrowing to finance expanding expenditure.

The debt increase was driven primarily by a €942.4 million rise in Malta Government Stocks, supplemented by a €249.9 million increase in Treasury Bills.

With central government debt now standing at almost €12 billion, the figures paint a stark picture of the country’s deteriorating debt position, a reality that remained hidden from voters until after the election due to the delayed publication of the data.