Deficit grows by €74.6m in seven months
The government's financial deficit widened by €74.6 million to €283.5 million in the first seven months of the year, the NSO revealed today.
"An increase of €131.1 million in total expenditure was only partly offset by an increase of €56.5 million in recurrent revenue," the NSO said.
During the first seven months this year, the Consolidated Fund recorded an increase of €26.7 million from income tax and of €24.4 million from VAT. Social Security Contributions also added €15.1 million. Revenue from licences, taxes and fines declined by €7.3 million while revenue classified under Miscellaneous Receipts declined by €10.0 million.
Recurrent expenditure amounted to €1,204.2 million, an increase of €129.1 million compared to the first seven months last year. Major increases in recurrent expenditure were recorded under Social Security Benefits, which added €35.1 million, while the Ministry of Health, the Elderly and Community Care and the Ministry for Investment, Industry and Information Technology added €29.9 million and €12.3 million respectively.
During the period under review the interest component of the public debt servicing costs amounted to €108.0 million, a comparative increase of €4.7 million over 2007.
Government’s outlay on its Capital Programme for the first seven months declined by €2.8 million and amounted to €132.4 million.
Loans taken up by Government for the first seven months of the year amounted to €106.0 million.
The Central Government debt outstanding at the end of July amounted to €3,486.9 million, an increase of €159.6 million compared to the gross Central Government debt outstanding at the end of July last year. While long-term borrowing increased by €149.3 million, short-term borrowing and foreign borrowing declined by €11.2 million and €6.3 million respectively.
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A Daley
Aug 29th 2008, 22:02
Deceit and lies, and deceit and lies, and more deceit and more lies.
The Government will never ever get rid of the budget deficit. The deficit might go slightly down in one year (after 3 years of hefty tax increases) and then it goes up again.
The problem is that during the last 15 years, the economy is more dependent on the Government's expenditure then ever before.
This is due to the fact that Industry has shrunk and the services industry is not rendering sufficient tax revenues to sustain the ever increasing recurrent expenditure.
The Government is borrowing more and more to inject more money in circulation.
The economy runs on massive National Debt, and we now have the ever increasing sum to service this Debt, which Debt is over 60% of GDP.
In short, we are living like that family pretending and shows that it is doing well financially, only that what it has is all borrowed.
Watch the fees for Health Services in the coming budget.
Watch the fees for the collection of rubbish.
Watch the introduction of the Council Tax.
Watch the increase in N.I.
Watch the reduction in Children's allowance once more.
Deceit and lies.
Enjoy!
J.M. Chapelle
Aug 29th 2008, 20:48
Im sorry.... weren't we promised something completely DIFFERENT?
Should i be surprised or not?
apgrech
Aug 29th 2008, 20:43
@ David Farrugia: Of course I was being sarcastic. Since when we congratulate the government for messing up the financing especially when such government promised a surplus in 2010?
I foresee a huge surplus in misadministration.
Robert P. Galea
Aug 29th 2008, 17:18
as a member of the general public i reiterate that we deserve an official statement from the government
is this growth in deficit an unforeseen circumstance or have we known this all along? what needs to be done and what are we going to do about it? we seriously need to get back on track and i seriously hope that whoever it is that issues the statement can provide concrete answers.
Mario Camilleri
Aug 29th 2008, 16:28
Where are all the PN apologists?? we have 3486.9 million euros of debts and no one dares to critisize the government about it. or i guess it's Alfred Sant's fault as usual!! But don't worry people.. we elected the government we deserve!! i am not bothered about all these debts...my children will pay it!!! right Mr depuis?
Byron Camilleri
Aug 29th 2008, 16:12
I think the PN did a small mistake in the electoral programme.. we will reach surplus in 20(0)10
Philip Paris
Aug 29th 2008, 15:31
Politician's don't care if the country goes into debit.
They make great incomes of the backs of the Maltese, then will retire outside of Malta , leaving the mess out of their sight.
Alexander Morana
Aug 29th 2008, 15:24
Ha ! Ha! Ha! And the Bishops are calling for prayers to solve our Dockyard problem. Add the ever increasing cost of living with 5% inflation, the ever increasing of the price of oil and energy. The daily influx of extra mouths to feed, clothe, health after care, without paying taxes. Shall I continue?
Of course we need all the prayers and all the saints in God's heaven to help us for what is to come.
laurie vella
Aug 29th 2008, 14:59
Just a small remark Malta's intrest on its debt last financial year was 85 million euro and rising, so don't expect any relief from taxes, if any you have to put up with more taxes to cover your foreign debt.
Victor Calleja
Aug 29th 2008, 14:42
Don't be surprised if the Government's reaction would be "blame it on Dr. Sant"
Byron Camilleri
Aug 29th 2008, 14:26
well done...
J. Mifsud
Aug 29th 2008, 14:18
Readers are asking for answers from the government. - I don't blame them, but how we get answers when this Island of ours is governed by auto-pilot.? This is a government (right now in sleeping mode) who blames all misfortunes on others - e.g. regulations by the EU, the price of oil, etc. etc. Now that oil has decreased in price, this fortunate news is not passed on to consumers.
The media should play a role in this. Wake up people!!!!!
By the way, a few weeks ago, before the 95% surcharge was imposed on us sleepers, when the price of oil was peaking, Net Television, especially Net News kept on reminding us about the price of oil, day after day, now that it has decreased not one word from them.
What happened to the few hundreds of PN promises before the elections. e.g. TV Licence etc.....
Joanne Micallef
Aug 29th 2008, 14:01
And to think that up to about 20 years ago Malta had a surplus of LM400 million together with some very very good assets.
Joe Galea
Aug 29th 2008, 13:46
Weren't our "Finanzi fis-Sod"?
Surplus by 2010? Sure, deficit surplus...lol
Now everyone can see that Gonzi has tricked everyone.
Robert Paul Galea
Aug 29th 2008, 13:40
Can we please have the government's reaction to this please clearly identifying why we are at this and what is going to be done?
We usually get a prompt reaction/statement from the government when dealing with other matters. I believe this deserves an even quicker response.
L Galea
Aug 29th 2008, 13:31
2010 surplus?
Certainly we shall have a surplus.
A surplus of illegal immigrants.
Add to that a surplus of parking tickets.
This is not to mention a surplus of arrogant politicians.
D.Vella
Aug 29th 2008, 13:24
Prosit GonziPN.. you're doing great!
David Farrugia
Aug 29th 2008, 12:39
@apgrech: I presume you wrote your comment with a heavy dose of sarcasm. In that case I agree with you. Otherwise I invite you to re read the article correctly.
@ Bernard Mamo: Whoever believes the surplus 2010 tale, must surely be living in the land of OZ.
V. Fenech
Aug 29th 2008, 12:38
And the Gonzi still pleading "Finanzi fis-Sod". Or maybe his government hasn't updated itself from last March's gimmicks. Something went wrong during all these years. The loss seems irreparable, I wonder what's in their mind after all these ongoing predictions of a 2010 surplus!!!!!!!
apgrech
Aug 29th 2008, 12:24
Congratulations to the government for the success it's achieving in this area. Keep it up Dr Gonzi.
Bernard Mamo
Aug 29th 2008, 12:12
surplus by 2010 or what year was it?
my a**!
PAR IDEJN SODI FUQ IT-TMUN TAL-PAJJIZ!