Malta’s government recorded a budget surplus of €7.7 million in the first quarter of 2025, reversing the deficit seen during the same period last year as revenue growth outstripped spending increases.

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According to National Statistics Office data released today, total revenue rose by 17.1% year-on-year to nearly €1.98 billion between January and March. This surge was driven primarily by a €212 million jump in current taxes on income and wealth, alongside increases in market output and social contributions.

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On the spending side, total expenditure reached €1.97 billion — up 9.1% from Q1 2024. The biggest drivers were higher compensation of employees (+€67 million) and increased outlays on social benefits and transfers (+€43 million).

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The positive balance comes despite the country’s debt pile continuing to grow. General government debt at the end of March stood at €10.94 billion, equivalent to 48.1% of GDP — up from €10.04 billion a year earlier. The increase was mainly due to higher long-term debt securities, which rose by nearly €800 million over the year.

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The result reflects ongoing adjustments under ESA 2010 accounting standards, which shifted the Consolidated Fund’s Q1 deficit of €240 million into surplus territory through accrual adjustments.

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Looking ahead, Malta will need to balance growth-supporting policies with prudence on borrowing, especially as debt levels edge higher.

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