Momentum has raised serious concerns over Malta's growing debt servicing burden, after the Auditor General reported that the government is now spending €261 million annually on interest payments, a sharp increase that critics warn could undermine future public investment.

In a statement Friday, the party said that government is now paying a staggering €261 million annually just to service its debt, marking a 22% increase compared to the previous year.

Momentum said that this sharp rise in debt servicing costs, driven by increased interest rates and borrowing needs, is diverting vital public funds away from critical investments and social welfare programmes.

It said that the Auditor General's report explicitly highlighted that "spending on debt servicing reduces the availability of public funds for other investments, as resources directed to interest payments could otherwise support initiatives that promote long-term economic growth and social welfare."

Treasurer of Momentum Carmel Asciak said that this growing burden of debt servicing is a serious issue that requires urgent attention.

"This fiscal strain raises concerns about the sustainability of Malta's public finances and its ability to invest in essential infrastructure, education, healthcare, and social services in the years to come," he said.

Asciak added that as it stands, Malta's economic growth cannot be sustained if a disproportionate share of public resources is spent on paying interest on past borrowing.

"If this trend continues, we risk compromising the welfare of future generations, who will not only be burdened with repaying the debt but will also face reduced investments in critical sectors that are essential for long-term prosperity," Asciak said.

Momentum called for a comprehensive strategy to manage existing debt while ensuring long-term investments in the nation's future.

Specifically, Momentum urged government to improve fiscal management by reducing unnecessary public spending and increasing budgetary efficiency.

"Scandals, such as the Vitals & Steward, Ta' Qali, ITS, Fortina and Fort Chambray cheap land sale, represent clear examples of public funds being wasted," the party said.

It said that the money lost through such incidents, together with the millions lost due to shady deals and dubious direct orders, could have been used to reduce public debt and ease the growing burden of annual interest payments.

Momentum said it remains committed to advocating for policies that promote fiscal sustainability, economic prosperity, and social welfare for all Maltese citizens.