Malta’s government deficit widened sharply by the end of November, reaching €474.3 million, according to the latest figures published by the National Statistics Office, marking a significant deterioration in the public finances compared to both last month and the same period last year.

The deficit increased by more than €100 million compared to October and was almost five times higher than the €102.5 million recorded in November 2024.

The Consolidated Fund, which effectively serves as the government’s main operating account into which tax revenue is deposited and from which general expenditure is paid, ended November firmly in the red amid rising spending pressures.

Government debt continued its upward trajectory, standing at €11.36 billion by the end of last month. This represents an increase of just under €1 billion when compared to the same point last year.

In the first eleven months of the year, recurrent revenue totalled €7.14 billion, while overall government expenditure reached €7.61 billion. Revenue rose by €316.1 million year-on-year, but this was more than offset by a €688 million increase in expenditure over the same period.

The strongest growth in revenue came from social security contributions, value added tax, and licences, taxes and fines. These gains were partially offset by lower inflows from grants, miscellaneous receipts, and interest on government loans.

On the spending side, recurrent expenditure reached €6.52 billion, rising by €560.3 million compared to the previous year. The increase was largely driven by higher spending on programmes and initiatives, alongside increased contributions to government entities, personal emoluments, and operational and maintenance costs.

Social security outlays were a key driver of the increase in programme spending, rising by €128.9 million. Additional pressures came from higher payments related to EU own resources and housing programmes.

Interest payments on public debt also continued to climb, reaching €264 million by the end of November, an increase of €28.9 million over the previous year.

Capital expenditure totalled €832 million, up €98.8 million year-on-year. The bulk of this increase was linked to the construction of a second electricity interconnector, spending under the RePowerEU initiative, and investment in maritime facilities. These increases were partially offset by reduced spending on electric vehicle schemes, roadworks, and investment incentives.

According to the NSO, the rise in government debt was primarily driven by an increase in government stocks, with smaller contributions from treasury bills and euro coins, partially offset by lower balances in government savings bonds and foreign loans.