National deficit stands at 2.2% as surplus projected in 2029

Meanwhile, Malta’s deficit forecast shows further small reductions of 0.6% until 2028. According to the projections, which were described as conservative, Malta will be in surplus in 2029 and 2030.

The finance minister noted that government had always intended a slow reduction in Malta’s deficit in order to protect the economy. He stressed that had government attempted to immediately lower the deficit or had it been afraid to increase national debt, the economy would suffocate, as is the case in other countries.

Caruana urges sobriety during “Silly Season”

The state’s debt stood at 46.4% of GDP in 2025. According to projections, this will decline steadily until it reaches 38.9% in 2030.

Caruana stated that these figures shatter “certain individuals’ and media houses’” attempts to shed doubt and sow fear over the national finances. 

Without naming the PN, who frequently bring up Malta’s debt, Caruana said that this strategy comes from an incompetence in economics or an attempt to misguide people.

Looking ahead, Caruana stated that despite ongoing global conflicts and the unpredictable nature of the future, he remains positive.

The finance minister then turned to address what he called the “Silly Season,” which politicians enter into at the end of each legislature when a general election is looming.

Caruana took aim at certain proposals he described as "detached from reality,” although he did not single out proposals or by which party they were made.

He appealed to Malta’s political class to remain sober, noting that they will not be credible if they make spectacular but unachievable promises.