A State Budget deficit of €1.79 billion is recorded for the fiscal year 2025, according to the Fiscal Report published by the Treasury.
According to the report, total Revenue, excluding inflows from borrowings and repayments of issued loans, amounted in 2025 to €10.05 billion (2024: €9.57 billion). Total Expenditure, excluding outflows for repayments and issuance of loans, amounted in 2025 to €10.15 billion (2024: €9.89 billion). As a result, a State Budget deficit, before net flows from borrowing, of €0.10 billion arose for 2025 (2024: €0.32 billion).
Taking into account inflows from borrowings and repayments of issued loans (2025: €0.16 billion, 2024: €1.24 billion) and outflows for repayments and issuance of loans (2025: €1.85 billion, 2024: €2.53 billion), a State Budget deficit of €1.79 billion arises for the fiscal year 2025 (2024: €1.61 billion).
The main source of State revenue for the fiscal year 2025, excluding inflows from borrowings and repayments of issued loans, is taxation (2025: €8.6 billion, 2024: €8 billion), which accounts for 86% of revenue. Tax revenue is distributed as 44% indirect taxes (2024: 44%) and 42% direct taxes (2024: 40%).
The main categories of State expenditure concern staff salaries, pensions and gratuities (€3.52 billion), social benefits (€2.02 billion), which include the Government’s contribution to the General Healthcare System, amounting to €0.82 billion (2024: €0.77 billion), and transfers (€1.67 billion), mainly relating to grants and contributions by the State to public law organisations, local authorities, the European Union, international organisations, and individuals.
Regarding public debt, it is noted that the total amount of borrowing, excluding intra-governmental borrowing of €13.21 billion (2024: €12.03 billion), as at 31/12/2025, amounted to €19.24 billion, compared to €20.92 billion as at 31/12/2024.
(Source: CNA)
