Government debt officially exceeds €10 billion

The Nationalist Party’s spokesperson on finance and economy have called out the stewardship of government finances by Labour, after national debt soared to over €10 billion for the first time ever at the end of August.

“This is a record in our country’s history. Malta has never had such high debt levels,” said MPs Jerome Caruana Cilia and Graham Bencini.

“Government expenditure increased by €504 million in the first eight months of this year compared to the previous year. The interest the government had to pay on its debt in the first eight months of the year rose by €40 million compared to the previous year. The total interest paid on the debt over these eight months surpassed €173 million.”

At the end of August 2024, Central Government debt stood at €10,050.4 million, an increase of €847.3 million when compared to 2023.

The increase reported under Malta Government Stocks (€1,083.4 million) was the main contributor to the rise in debt. Higher debt was also reported under Foreign Loans (€71.9 million) and Euro coins issued in the name of the Treasury (€3.8 million). This increase in debt was partially offset by drops in Treasury Bills (€225.7 million) and the 62+ Malta Government Savings Bond (€26.1 million). Moreover, higher holdings by government funds in Malta Government Stocks resulted in a decrease in debt of €59.9 million.

The MPs said taxpayers were footing just under €720,000 in interest on the debt every day.

“This is a record in Malta’s history. Over the past year, Robert Abela’s government increased debt by €847 million. This means that debt is rising by almost €4 million every day.”

The two MPs said that country’s accumulated debt since 1964 stood at €5.7 billion in 2020. “In less than five years, Robert Abela’s Labour government has added €4.35 billion in debt. This means that under Robert Abela, the national debt has almost doubled.”

“The PN insists that the government should eliminate the ‘corruption tax’ and ensure that finances are sustainable.

“All ofthis debt is a burden on our children. A high level of debt discourages investment. It’s a shame that public funds continue to be squandered carelessly…  This is why, beyond being ethically and morally right, Robert Abela and his colleagues must ensure that what was stolen from our country is returned.”

Between January and August 2024, government revenue amounted to €4.8 billion, over €693 million higher than the previous year. Spending stood at €4.7 billion, a half-billion higher than the previous year.

The interest component of the public debt servicing costs totalled €173.2 million, an increase of €40 million when compared to the previous year.

The difference between total revenue and expenditure resulted in a surplus of €98.6 million.