Deficit shoots up

Galea. L

Aug 28th 2009, 17:58

James Dimech

"higher social security benefits (+€24.6 million), the shipyards’ voluntary retirement schemes (+€19.4 million) and medicines and surgical materials (+€4.7 million)"

So according to you people should not get social services and health services. As for the Shipyard workers you similarly show your hatred that was perpetrated by the PN over the years. This clearly shows your hatred for all those who need social services and for the shipyard workers. Pray God that you will never need social services and health services because many rich people ended penniless due to disease.

M.Bezzina

Aug 28th 2009, 17:44

23 yrs in power and you blame the PL for this??Mintoff did not leave 1c deficit in the box so all this merit goes to Gonzi-PN party ux!!

Anthony Mizzi

Aug 28th 2009, 17:39

Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.



- Ron Paul

E. Azzopardi

Aug 28th 2009, 15:51

I was under the impression ( as is the vast majority) that our finances were in good shape, that the recession did not hit us that hard and that Malta was one of the countries which was least suffering in these difficult months and that there are signs that we are getting out of the recession. So why has the deficit shot up, the others are getting out of trouble one by one (Germany, France now Italy etc) and we are regressing, unfortunately., I am not an economist but something is wrong somewhere. Can somebody explain to us simple citizens?

Alexander Morana

Aug 28th 2009, 15:01

@ R. Gauchi. You are true only to yourself. However Governments run by elected people like you and me, don't have any accountability towards their fellow citizens, thus the untruths and half truths which we are fed everyday.
The present deficit is a product of the unaccountability of the administration with an appetite to spend and spend as if there is no tomorrow. This over spend causes further inflation which in turn reflects in the cost of living. Tthe overturning of the lira to the Euro, when it was pared at a higher value than what the real value of the lira was suppose to be. Plus people are spending less which means less revenue for the treasury, due to the recession. The national debt has to be serviced at the accumulated interest, so the government has to pay out that interest. Where do you think the government is going to find the revenues to keep the country functioning?
There are two choices left, raise taxes or cut spending. Boy I can’t wait for the budget which is due very soon. Oh by the way Brussels says we have to balance this deficit by 2010! Ouch!

James Green

Aug 28th 2009, 14:47

Ah Well.
Guess we'll still be using the cheap tarmac which wears out instantly, for the (very) few (if any) 'roads' due for surfacing next year.
And are we to expect a rise in vehicle registration 'tax' just to rub in the proverbial salt?

A. Briffa

Aug 28th 2009, 14:23

@ James

Int bis-Serjeta???

So all those millions found to be lost due to corruption - those are also LP babies?

Stop being pathetic!

N.Cortis

Aug 28th 2009, 14:20

James-----don't you remember sayings like "money no problem" ?????from PN leadership------to day It seems to be "MONEY A BIG PROBLEM"!!!!!

Muscat. Pat

Aug 28th 2009, 14:15

@ James Dimech.
The truth is that each Cent and Euro added to the deficit by those who you admire, is an other knot tied in the noose round our kid's neck. There is no future with such a debt and deficit, except for the fortunate passengers who are having it very good on the PN GRAVY TRAIN. Salut!

Joanne Micallef

Aug 28th 2009, 14:11

There are women out there who practically perform miracles with just their husbands income to support the family. The Goverment should hire the services of a normal housewife, if possible with 3 or more kids in tow, as with such years of experience ( managing a household with just one income ) I'm sure she'll be able to get the house in order in no time.

Donavan Galea

Aug 28th 2009, 14:09

@ James Dimech

What do you expect, to stop social benefits now?!? Did you forget that the GonziPN Government predicted a surplus and indeed as used to say by his predecessor, "Photo finish!".... what do you expect, not to buy medical supplies?!?! Don't forget that now we got a state of the art hospital which is equipped with only 1,000 beds!

Come on....... didn't you realise that this Government is a failure - it privitased everything including the Maltco which used to render lots of € !!! GonziPN failed also in management since it lost complete control of our beloved country, and indeed is a money squanderer at the Income Tax payer expense.

"Finanzi fis-Sod" indeed....my foot!!!

Ivan Camilleri

Aug 28th 2009, 14:08

1. Increase in deficit = lower tax revenues for the govt
2. Increase in revenue = higher taxes
Therefore: Increase in tax revenue=lower budget deficit

EG: Utility rates
Higher utility rates = lower budget deficit but also = reduced disposable income (flus fil-bwiet tan-nies) = TGERGIR ghax kontijiet gholjin...

Lower utility rates = higher budget deficit = increased disposible income = TGERGIR ghax budget deficit.

End result is always the same : MALTESE GEMGEM

F J Brincat

Aug 28th 2009, 14:07

James Dimech, you forgot to include “...which were partly offset by a fall in the energy support measures (-€20.8 million)” I take it that would be the subsidy on electricity, water and LPG.

And oh, there is no lack of bummers and leeches on the PN side as well…and they have been leeching for a good number of years now.

Roberto Axisa

Aug 28th 2009, 14:02

During the budget speech just before the last election the prime minister told us that now our sacrifices paid off and our economy and finances are in a very good shape such that by 2010 the government was going to end up with a surplus and splashed out millions in social security benefits. Now we are being told that it's back to square one, where the deficit is shooting up like never before!!! If you ask me the government took the people for a ride and stole their votes. I wonder from where are we going to get the millions for the piano project , for the new power station, for the underwater cable from Sicily to Malta, for the extension of Mater dei hospital, etc etc.

Galea. L

Aug 28th 2009, 13:56

R Axisa
The Prime Minister, Ministers and Parliamentary secretaries sure turned their salaries into surpluses with an additional Lm125 SALARY INCREASE PER WEEK.

James Dimech

Aug 28th 2009, 13:36

PN should definately get the its act together on this. But please note the main causes:

"higher social security benefits (+€24.6 million), the shipyards’ voluntary retirement schemes (+€19.4 million) and medicines and surgical materials (+€4.7 million)"

...these are all babies of LP, whose electorate is also composed by a majority number of bummers and notorious "familji" who expect to live over other people's hard earned taxes.

Rocco Cauchi

Aug 28th 2009, 13:13

I am no economist but I think I can manage my household affairs quite well as a bonus paterfamilias. Can any honest non-partisan economist please explain to me the following, laying the blame, if any, on government and private individuals alike. What I would like to know is the true state of the economy and how well can we fare into the future as an independent nation with the state being currently reported:
1. How wise is it to have a €3,876.6 million national debt (€9700 per person)?
2. What does millions of liri which have not been yet converted into euros mean? Was it easy money or inflated money, not being equaled with an equivalent amount of work?
3. What does the huge amount of money owed by individuals and deposited in overseas banks mean, and is it deleterious to government's economic situation?
Honest answers please by non-politically minded persons if we really want to grow up.

Nigel Lawrence

Aug 28th 2009, 12:43

Deficit shoots up---

This isn't news anymore, this is completely predictable - and it's NOT going to get any better.

Pierre Calafato

Aug 28th 2009, 12:35

This has now become an everyday occurrence and it's not news any more. The PN government should start preparing its own version of the Guinness Book of Records listing all its negative financial, economic and social results these past two decades.

Mark Micallef

Aug 28th 2009, 12:26

Are we not meant to be having a surplus budget in 2010?

P. Schembri

Aug 28th 2009, 12:21

After this piece of news, I think I'll skip lunch! No stomach for it now!

R Axisa

Aug 28th 2009, 12:16

Some time ago, Dr Gonzi promised that the deficit will be turned into a surplus, but it seems that the deficit is still shooting up! Probably he was only day dreaming! Bit-tama se nibqghu tghidli qalbi! U min jghix bit-tama ........................