In the second quarter of 2026, the General Government recorded a deficit of €344.1 million, with debt at €11,977.2 million, the NSO said Wednesday.
Between April and June 2026, total revenue amounted to €2,177.5 million, an increase of €212.3 million compared with the same quarter in 2025. This was mainly brought about by increases in Current taxes on income and wealth (€141.2 million), Net social contributions (€32.4 million), Capital transfers receivable (€27.8 million) and Taxes on production and imports (€23.0 million). These were partially offset by a decrease in Market output (€30.4 million).
Total expenditure in the second quarter of 2026 reached €2,521.6 million, an increase of €321.5 million over the corresponding quarter in 2025. The largest increase was recorded in Intermediate consumption (€87.6 million), followed by Compensation of employees (€60.8 million), Social benefits and social transfers in kind (€53.3 million) and Capital transfers payable (€47.2 million). Conversely, Subsidies payable was the only category to register a decrease (€6.9 million).
Adjustments were implemented to the Government's Consolidated Fund data to transition to accrual-based accounting, aligning with the requirements of ESA 2010. In the second quarter of 2026, these adjustments reduced the Consolidated Fund deficit by €35.2 million, from €379.2 million to €344.1 million.
Quarterly financial accounts (t/t-1)
During the second quarter of 2026, there were increases in financial transactions in assets, mainly in Currency and deposits (€609.4 million), Other accounts receivable (€68.7 million), and Long-term debt securities (€12.0 million). In contrast, Long-term loans decreased by €6.0 million.
On the liabilities side, the biggest increases were recorded in Long-term debt securities (€483.3 million), Other accounts payable (€473.0 million) and Short-term debt securities (€24.7 million), while Currency and deposits registered a marginal decrease of €0.5 million.
Quarterly debt (t/t-4)
At the end of June, General Government debt stood at €11,977.2 million, equivalent to 47.0 per cent of Gross Domestic Product (GDP). This represented an increase of €890.7 million over the corresponding quarter in 2025, largely reflected in Central Government Debt, which amounted to €11,975.1 million. Currency and deposits stood at €398.7 million, a decrease of €32.1 million over the figure recorded for June of 2025.
This includes euro coins issued in the name of the Treasury, considered a liability of Central Government, and the 62+ Malta Government Savings Bond, which amounted to €284.9 million. Long-term and short-term debt securities increased by €863.7 million and €128.8 million, respectively. On the other hand, Long-term loans decreased by €65.1 million, while Short-term loans decreased by €4.6 million. Local Government debt stood at €2.0 million (Table 11).
General Government guaranteed debt amounted to €869.1 million at the end of June 2026, equivalent to 3.4 per cent of GDP1. There was a decrease of €88.1 million when compared to the second quarter of 2025.