Malta's government deficit has risen to €339 million in the first quarter of 2026, according to figures published by the National Statistics Office on Monday. This represents an increase in expenditure and a dip in revenue compared to the same period last year.

Government spending surged to €2.3 billion during the first three months of the year, a rise of almost €300 million from the same period in 2025. Intermediate consumption, which includes goods and services consumed throughout production processes such as utilities, maintenance, raw materials, and operational services, was a significant contributor to this increase. These expenses rose by almost €100 million compared to the same period last year.

Government spending on its workers also increased sharply during this period, rising to €644 million – €35 million more than the last quarter of 2025. Meanwhile, revenue received by the government remained relatively stable at just over €2 billion, marginally higher than during the first three months of last year. Personal taxes collected accounted for over €800 million, while taxes on production and imports contributed a further €600 million.

The increase in government spending has resulted in a rise in Malta's debt to almost €11.5 billion – an increase of €549 million compared to the same period last year. However, this represents a decrease in relation to Malta's GDP, with debt now standing at 45.9% of the country's economy. EU rules dictate that Malta's debt burden must remain beneath the 60% mark.

Malta's economic performance has been resilient in recent years but faces growing risks linked to global uncertainty. The Central Bank of Malta has highlighted this concern in its latest annual report, citing a moderate slowdown in economic activity despite robust growth above that of the euro area. Policymakers will be keeping a close eye on the government's fiscal performance and debt levels to ensure they remain within the required limits.