Gibraltar Budget 2026: Public Finances

Last reviewed: 17 July 2026

Gibraltar Budget 2026 sets out the Government's revenue, spending, surplus, debt and public-sector pay position for the year ahead. This page brings together the public-finance and public-sector measures separately from the business and personal guides.

It is general public information, not financial, investment, tax or political advice.

Public finances at a glance

• For 2025/26, forecast revenue reached £883.5 million.
• The recurrent surplus for 2025/26 was £15.7 million.
• For 2026/27, Government projects revenue of £854.1 million.
• Projected expenditure for 2026/27 is £843.1 million.
• The projected surplus for 2026/27 is £11 million.
• Aggregate public debt is projected at £887.7 million by March 2027.
• Net debt is projected at £722.7 million.
• Net debt was presented as 21.4% of GDP and gross debt as 27.5%.
• Government committed to annual debt reduction of at least £5 million or 10% of the annual surplus, whichever is greater.
• The Budget sets out a long-term ambition for a Gibraltar Sovereign Wealth Fund.
• A multi-year public-sector pay settlement begins.

Revenue, expenditure and surplus

For 2026/27, Government projects revenue of £854.1 million, expenditure of £843.1 million and a surplus of £11 million.

These figures matter because they frame the affordability of public services, pay commitments, debt reduction and long-term policy ambitions.

Public debt and net debt

The Budget projects aggregate public debt of £887.7 million by March 2027 and net debt of £722.7 million. Net debt was presented as 21.4% of GDP and gross debt as 27.5%.

Government also committed to annual debt reduction of at least £5 million or 10% of the annual surplus, whichever is greater.

Sovereign Wealth Fund

The stated long-term ambition is to grow a Gibraltar Sovereign Wealth Fund to between £700 million and £1 billion over 35 years, with an indicative growth ambition of 3.5% to 5%. Its significance to Gibraltar's finance-centre positioning is considered in the Budget guide for companies, finance and high-net-worth residents.

The first announced investment is in the UK-regulated elderly-care sector. These are long-term policy objectives and should not be treated as guaranteed investment returns.

Public-sector pay settlement

The Budget introduces a structured public-sector settlement intended both to restore purchasing power and provide longer-term certainty.

The announced framework includes:

• a 2.5% annual recovery increase across salary bands for five financial years from 2026/27 to 2030/31;
• an intended recovery of a cumulative 12.6% loss;
• additional inflation-linked adjustments where inflation exceeds 2.5%, subject to affordability provisions;
• full recovery on salaries up to £100,000 and 50% on the portion above that threshold;
• a stated minimum public-sector salary of £24,413;
• two additional annual-leave days for employees with more than 15 years of service;
• a later framework from 2032/33 to 2036/37 providing inflation plus 1%, capped at 4% a year.

Public-sector recruitment and housing support

Government also announced recruitment against approved vacancies, including 57 administrative-assistant posts.

The Budget also refers to a conditional £30,000 housing bursary for Royal Gibraltar Police recruits, linked to applicable service requirements.

Why this matters

Public-finance measures are not only of interest to public-sector workers. Within the wider Gibraltar Budget 2026 summary, they contribute to Gibraltar's economic narrative through fiscal credibility, public-sector stability, debt management, long-term reserves and investor confidence.

Frequently asked questions

Is the 2026/27 Budget projected to be in surplus?

Yes. Government projects revenue of £854.1 million, expenditure of £843.1 million and a surplus of £11 million for 2026/27.

What is Gibraltar's projected public debt?

Aggregate public debt is projected at £887.7 million by March 2027. Net debt is projected at £722.7 million.

What is the Sovereign Wealth Fund target?

The stated long-term ambition is to grow a Gibraltar Sovereign Wealth Fund to between £700 million and £1 billion over 35 years. This is a policy ambition, not a guaranteed investment result.

How does the public-sector pay settlement work?

The settlement includes a 2.5% annual recovery increase for five financial years, with further inflation-linked provisions subject to the framework's affordability rules.