---
title: "Government Deficit Widens to €178 Million, National Debt Nears €12 Billion"
date: 2026-06-26T14:02:06.06+00:00
updated: 2026-06-26T23:01:47.041+00:00
topics: ["Politics", "Economy", "National"]
canonical: https://filqosor.com/article/2026-06-26/government-deficit-widens-national-debt-nears-12-billion
source: Fil-Qosor
---

# Government Deficit Widens to €178 Million, National Debt Nears €12 Billion

## In brief

- Malta's government deficit reached €178 million in the first five months of 2026.
- This deficit is over €30 million higher than the same period last year, according to the National Statistics Office.
- National debt is now approaching €12 billion, as expenditure growth outpaced revenue increases.

Malta's government recorded a deficit of €178 million during the first five months of 2026, according to figures released by the National Statistics Office (NSO). This represents a widening of more than €30 million when compared to the same period in the previous year.

The increase in the deficit is primarily attributed to a surge in capital spending and rising recurrent costs. These expenditures have grown at a faster rate than the government's revenue, despite a period of record revenue growth.

In addition to the widening deficit, the country's national debt is now nearing the €12 billion mark. This figure highlights the ongoing financial pressures on public finances.

Newsbook reported on the NSO's findings, noting the significant increase in the deficit and the approaching €12 billion debt threshold. The outlet emphasised that government spending had outpaced its income.

The Maltese Herald also covered the NSO's release, indicating that the government's finances appear to be deviating from their original targets. The newspaper highlighted that expenditure growth has been quicker than revenue growth over the first five months of the year, raising concerns about fiscal stability.

Both independent news outlets drew attention to the official statistics, underscoring the challenges faced by the government in managing its financial targets amidst increasing spending and debt levels.

New government finance figures confirm Malta's national debt reached €11.84 billion by the end of May 2026. This precise figure follows the €178 million deficit recorded in the Consolidated Fund during the first five months of the year.

Between January and May, recurrent revenue saw an increase of €517.5 million. However, total expenditure rose by an even higher €549.4 million, contributing to the deficit and the overall increase in national debt.

## The Spin Room

**Low media divide.** Lovin Malta reported the latest government finance figures without notable framing differences.

## Updates

- **2026-06-26:** Updated with the precise national debt figure and details on revenue and expenditure increases.

## Sources (3)

- [Newsbook](https://newsbook.com.mt/en/deficit-widens-and-debt-nears-e12-billion-as-spending-outpaces-record-revenue-growth/)
- [The Maltese Herald](https://themalteseherald.com/2026/06/26/government-finances-miss-their-target-and-go-off-track/)
- [Lovin Malta](https://lovinmalta.com/news/local/maltas-debt-climbs-to-e11-84-billion-as-government-records-e178-million-deficit/)

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