While public debt often raises alarm, Malta’s figures paint a different picture. Despite global pressures, Malta has borrowed strategically to shield families from rising costs, support businesses, and sustain growth, all while keeping its debt stable, manageable and predictable.

Public debt often sparks concern, but Malta’s situation deserves to be examined in context. As of the end of 2024, the General Government debt stood at €10,684.40 million, which is equivalent to 47.4% of GDP (NSO, 2025). This is much lower than the Euro Area average of circa 88% and well below the 60% limit set by EU treaties.

Even though the world economy is under a lot of stress, this government has been able to borrow money in a way that helps families and keeps the government’s credit rating high. From 2023 to 2024, the total amount of public debt went up by about €817.7 million (NSO, 2025). Even with that increase, Malta’s debt-to-GDP ratio is still stable and manageable. Forecasts suggest that by 2025, it will stand at circa 48.0%, which is still well below the EU’s average. 

What matters most is why this debt exists. Borrowing has been used strategically: to maintain energy subsidies that protect families from soaring international prices, to keep social welfare and pensions, to support businesses through wage supplements during crises, and to invest in infrastructure and innovation. These expenses aren’t a waste of money; they are targeted actions that kept unemployment low, preserved demand, and helped Malta maintain one of the euro area’s strongest growth performances.

The Labour Government is also ensuring that this debt remains manageable. The average interest rate on all of the Government’s outstanding debt in 2024 was only 2.6% (NSO, 2025). Malta’s debt structure is also solid, with 86.5% of it coming from long-term instruments such as Malta Government Stocks and Treasury Bills. This makes it stable and predictable.

Ultimately, these numbers tell a reassuring story. Malta’s debt remains below the EU average, its ratio is well within the Maastricht threshold, and its economy is still growing. The Government’s fiscal strategy has not been a burden. Instead, it has protected families and served as a springboard for economic growth. It is clear proof that, even in difficult times, Malta can strike the right balance between compassion and responsibility.