Budget Explorer · Economy
Economy and government finances
Forecasts and fiscal estimates published with the 2027 Budget. 2025 figures are actual, 2026 revised, and 2027 onwards are estimates.
Economic forecasts
| Indicator | 2026 | 2027 |
|---|---|---|
| Real GDP growth | 4.1% | 3.8% |
| Private consumption | 3.9% | 3.8% |
| Investment | 10.2% | 7% |
| Unemployment rate | 3.3% | 3.2% |
| Inflation | 2.5% | 2.7% |
Deficit and debt (% of GDP)
Government finances (€ million)
| Item | 2025Actual | 2026Revised | 2027Estimate | 2028Estimate | 2029Estimate |
|---|---|---|---|---|---|
| Tax revenue | 7,448 | 8,358 | 9,003 | 9,566 | 10,146 |
| Total revenue | 8,072 | 9,078 | 10,082 | 10,605 | 11,173 |
| Recurrent expenditure | 7,486 | 8,388 | 9,042 | 9,414 | 9,838 |
| Capital expenditure | 1,114 | 1,169 | 1,453 | 1,458 | 1,503 |
| Interest payments | 297 | 326 | 382 | 401 | 411 |
| Consolidated Fund balance | -824 | -805 | -795 | -668 | -580 |
| General government balance | -506 | -679 | -724 | -644 | -556 |
| General government debt | 11,410 | 12,305 | 13,130 | 13,849 | 14,485 |
| Nominal GDP | 24,664 | 26,348 | 28,080 | 29,821 | 31,610 |
| Balance, % of GDP | -2.1% | -2.6% | -2.6% | -2.2% | -1.8% |
| Debt, % of GDP | 46.26% | 46.7% | 46.76% | 46.44% | 45.82% |
Consolidated Fund figures are cash-based government accounts; the general government balance is the EU fiscal measure. Do not compare the two directly. The speech notes that about half of the deficit relates to energy subsidies.
Full financing and debt composition
Source Tables 5.2/5.3, printed pp. 53/54 (PDF pp. 57/58). Component rows overlap totals and must not be added again. 2025 actual, 2026 revised, later years estimates.
| Item (€ million) | 2025 | 2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|---|
| Other revenue | 624 | 721 | 1,079 | 1,039 | 1,027 |
| Balance before interest | -527 | -479 | -413 | -267 | -169 |
| Recurrent balance | 290 | 365 | 658 | 791 | 924 |
| Consolidated Fund balance adjustments: Extended Government adjustments | 318 | 126 | 71 | 24 | 24 |
| Financing: direct loan repayments | -459 | -959 | -915 | -1,043 | -913 |
| Financing: early repayment of MGRSB | -6 | -5 | -5 | -4 | -2 |
| Financing: foreign loan repayments | -80 | 0 | 0 | 0 | -107 |
| Foreign sinking fund contributions | -0 | -0 | -0 | 0 | 0 |
| Special MGS sinking fund contributions | -30 | -30 | -30 | -30 | -30 |
| Equity acquisition | -0 | -10 | -0 | -0 | -0 |
| Repayment of loans made by Government | 5 | 7 | 5 | 5 | 5 |
| Total listed financing items | -570 | -997 | -945 | -1,072 | -1,047 |
| Borrowing requirement | -1,394 | -1,802 | -1,740 | -1,740 | -1,627 |
| Foreign borrowing | 78 | 0 | 0 | 0 | 0 |
| Consolidated Fund opening balance | -866 | -863 | -765 | -705 | -645 |
| Domestic borrowing | 1,320 | 1,900 | 1,800 | 1,800 | 1,600 |
| Consolidated Fund closing balance | -863 | -765 | -705 | -645 | -672 |
| Government stocks | 9,245 | 10,312 | 11,199 | 12,042 | 12,822 |
| Malta Government Retail Savings Bonds | 288 | 190 | 185 | 118 | 51 |
| Treasury bills | 775 | 690 | 630 | 569 | 597 |
| Foreign loans | 490 | 490 | 490 | 490 | 383 |
| EBUs / Local Councils | 168 | 168 | 168 | 168 | 168 |
| Currency | 112 | 126 | 131 | 136 | 141 |
| ESA rerouted debt | 333 | 330 | 328 | 325 | 323 |
2026 approved versus revised accounts
Table 5.1, printed p. 52 (PDF p. 56). Historical Consolidated Fund cash accounts and separate General Government adjustment. Units €000, not 2027 allocations. Dashes in financial cells are shown as zero.
| Item (€000) | 2025 actual | 2026 approved | 2026 revised |
|---|---|---|---|
| Tax revenue | 7,447,716 | 7,814,205 | 8,357,535 |
| Other revenue | 624,172 | 606,424 | 720,945 |
| Total revenue | 8,071,888 | 8,420,629 | 9,078,480 |
| Recurrent expenditure | 7,485,686 | 7,813,174 | 8,387,872 |
| Capital expenditure | 1,113,506 | 1,123,513 | 1,169,250 |
| Balance before interest | -527,304 | -516,058 | -478,642 |
| Interest | 296,620 | 335,942 | 325,942 |
| Recurrent balance | 289,582 | 271,513 | 364,666 |
| Consolidated Fund balance | -823,924 | -852,000 | -804,584 |
| Direct loan repayments | -459,455 | -958,472 | -958,698 |
| Early MGRSB repayments | -5,905 | -5,755 | -5,295 |
| Foreign loan repayments | -80,000 | 0 | 0 |
| Foreign sinking fund | -30 | -30 | -30 |
| Special MGS sinking fund | -30,000 | -30,000 | -30,000 |
| Equity acquisition | -280 | -50 | -10,050 |
| Repayment of government loans | 5,338 | 2,784 | 6,652 |
| Sale of shares/assets | 0 | 0 | 0 |
| Listed financing total | -570,332 | -991,523 | -997,421 |
| Borrowing requirement | -1,394,256 | -1,843,523 | -1,802,005 |
| Foreign borrowing | 77,850 | 0 | 0 |
| Opening Consolidated Fund | -866,322 | -985,022 | -862,979 |
| Domestic borrowing | 1,319,749 | 1,900,000 | 1,900,000 |
| Financing/balance movements subtotal | 453,427 | 914,978 | 1,037,021 |
| Closing Consolidated Fund | -862,979 | -928,545 | -764,984 |
| General Government adjustments | 318,241 | 101,000 | 125,584 |
| General Government balance | -505,683 | -751,000 | -679,000 |
| Nominal GDP | 24,664,030 | 26,408,200 | 26,347,600 |
| General Government balance / GDP | −2.1% | −2.8% | −2.6% |