Friday, 29th August 2008 - 11:54CET
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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Comments
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!
Should i be surprised or not?
I foresee a huge surplus in misadministration.
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.
They make great incomes of the backs of the Maltese, then will retire outside of Malta , leaving the mess out of their sight.
Of course we need all the prayers and all the saints in God's heaven to help us for what is to come.
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.....
Surplus by 2010? Sure, deficit surplus...lol
Now everyone can see that Gonzi has tricked everyone.
We usually get a prompt reaction/statement from the government when dealing with other matters. I believe this deserves an even quicker response.
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.
@ Bernard Mamo: Whoever believes the surplus 2010 tale, must surely be living in the land of OZ.
my a**!
PAR IDEJN SODI FUQ IT-TMUN TAL-PAJJIZ!