Malta’s government deficit fell by almost €200 million during the first four months of 2026, according to newly published figures from the National Statistics Office (NSO).By the end of April, the Government’s Consolidated Fund registered a deficit of €65.5 million, down from €261.4 million during the same period last year.The improvement came as government revenue grew faster than expenditure.Between January and April, recurrent revenue reached €2.86 billion, an increase of €635.7 million over 2025 levels. The largest increases came from income tax, which rose by €347.5 million, followed by VAT revenue, which increased by €102 million.Government expenditure also increased, rising by €439.8 million to €2.92 billion.The biggest rise in spending was recorded under programmes and initiatives, which increased by €191.8 million.Additional expenditure was directed towards social security benefits, medicines and surgical materials, energy support measures and contributions to government entities.Capital spending also increased, with higher outlays reported on road construction projects, the second electricity interconnector and other infrastructure investments.Despite the improved deficit position, Malta’s overall debt continued to climb.By the end of April, Central Government debt stood at €11.97 billion, representing an increase of €1.14 billion compared to a year earlier.The figures suggest that strong revenue growth, particularly from taxation, is helping improve Malta’s fiscal position even as government spending and debt continue to rise.How should government spending be prioritised?•