261 million euros are gobbled up by interest payments every year

Momentum is raising serious concerns over the significant increase in Malta’s debt servicing costs, as outlined in the recent audit by the Auditor General.

The Government of Malta is now paying a staggering €261 million annually just to service its debt, marking a 22% increase compared to the previous year.

This sharp rise in debt servicing costs, driven by increased interest rates and borrowing needs, is diverting vital public funds away from critical investments and social welfare programs.

The Auditor General’s report explicitly highlights that “spending on debt servicing reduces the availability of public funds for other investments, as resources directed to interest payments could otherwise support initiatives that promote long-term economic growth and social welfare.”

Carmel Asciak, Treasurer of Momentum, said: “This growing burden of debt servicing is a serious issue that requires urgent attention. This fiscal strain raises concerns about the sustainability of Malta’s public finances and its ability to invest in essential infrastructure, education, healthcare, and social services in the years to come.”

“As it stands, Malta’s economic growth cannot be sustained if a disproportionate share of public resources is spent on paying interest on past borrowing. If this trend continues, we risk compromising the welfare of future generations, who will not only be burdened with repaying the debt but will also face reduced investments in critical sectors that are essential for long-term prosperity,” Asciak added.

Momentum is calling for a comprehensive strategy to manage existing debt while ensuring long-term investments in the nation’s future. Specifically, Momentum urges the government to improve fiscal management by reducing unnecessary public spending and increasing budgetary efficiency. Scandals, such as the Vitals & Steward, Ta’ Qali, ITS, Fortina and Fort Chambray cheap land sale, represent clear examples of public funds being wasted. The money lost through such incidents, together with the millions lost due to shady deals and dubious direct orders, could have been used to reduce public debt and ease the growing burden of annual interest payments.

Momentum remains committed to advocating for policies that promote fiscal sustainability, economic prosperity, and social welfare for all Maltese citizens.

261 miljun ewro jinbelgħu minn ħlasijiet ta’ imgħax kull sena

Momentum qed iqajjem tħassib serju dwar iż-żieda sinifikanti fl-ispejjeż tas-servizz tad-dejn ta’ Malta, kif deskritt fl-awditjar reċenti mill-Awditur Ġenerali.

Il-Gvern ta’ Malta issa qed iħallas is-somma kbira ta’ €261 miljun kull sena sempliċement biex iħallas id-dejn tiegħu, li jimmarka żieda ta’ 22% meta mqabbel mas-sena ta’ qabel.

Din iż-żieda qawwija fl-ispejjeż tas-servizz tad-dejn, immexxija minn rati ta’ imgħax miżjuda u ħtiġijiet ta’ self, qed tiddevja fondi pubbliċi vitali minn investimenti kritiċi u programmi soċjali.

Ir-rapport tal-Awditur Ġenerali jenfasizza espliċitament li “l-infiq fuq is-servizz tad-dejn inaqqas id-disponibbiltà ta’ fondi pubbliċi għal investimenti oħra, peress li r-riżorsi diretti lejn ħlasijiet ta’ imgħax jistgħu altrimenti jappoġġjaw inizjattivi li jippromwovu tkabbir ekonomiku fit-tul u benesseri soċjali.”

Carmel Asciak, it-Teżorier ta’ Momentum, qal: “Dan il-piż dejjem jikber tas-servizz tad-dejn huwa kwistjoni serja li teħtieġ attenzjoni urġenti. Din it-tensjoni fiskali tqajjem tħassib dwar is-sostenibbiltà tal-finanzi pubbliċi ta’ Malta u l-kapaċità tagħha li tinvesti f’infrastruttura essenzjali, edukazzjoni, kura tas-saħħa, u servizzi soċjali fis-snin li ġejjin.”

“Kif inhi bħalissa, it-tkabbir ekonomiku ta’ Malta ma jistax jiġi sostnut jekk sehem sproporzjonat mir-riżorsi pubbliċi jintefaq fuq il-ħlas tal-imgħax fuq self tal-passat. Jekk din ix-xejra tkompli, nirriskjaw li nikkompromettu l-benesseri tal-ġenerazzjonijiet futuri, li mhux biss se jkunu mgħobbija bil-ħlas lura tad-dejn iżda se jiffaċċjaw ukoll investimenti mnaqqsa f’setturi kritiċi li huma essenzjali għall-prosperità fit-tul,” żied jgħid Asciak.

Momentum qed jitlob strateġija komprensiva biex jiġi ġestit id-dejn eżistenti filwaqt li jiġu żgurati investimenti fit-tul fil-futur tan-nazzjon. Speċifikament, Momentum iħeġġeġ lill-gvern biex itejjeb il-ġestjoni fiskali billi jnaqqas l-infieq pubbliku bla bżonn u jżid l-effiċjenza baġitarja. Skandli, bħall-Vitals & Steward, Ta’ Qali, ITS, Fortina u Fort Chambray u l-bejgħ ta’ art pubblika bl-irħis, jirrappreżentaw eżempji ċari ta’ fondi pubbliċi li qed jinħlew. Il-flus mitlufa permezz ta’ din l-imġiba rresponsabbli, flimkien mal-miljuni mitlufa minħabba ftehimiet dubjużi u ordnijiet diretti dubjużi, setgħu ntużaw biex inaqqsu d-dejn pubbliku u jtaffu l-piż dejjem jikber tal-ħlasijiet tal-imgħax annwali.

Momentum jibqa’ impenjat li jħeġġeġ politiki li jippromwovu s-sostenibbiltà fiskali, il-prosperità ekonomika, u l-benesseri soċjali għaċ-ċittadini Maltin kollha.

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