The Finance Minister is still confident the deficit will be more or less in line with projections for the year despite latest statistics showing it has soared to €410.5 million until November.
This is a whopping €152.5 million higher than the €258 million* which Tonio Fenech, in his Budget speech, had projected as the central government's deficit for 2009.
It is common for the deficit to soar right up to November before settling back down again after December when significant tax payments are made. Last year there was a gap of €71 million between the government predictions for the year and the NSO figures for the year up to November.
However, this year, the margin is more than double that.
Asked to comment on the data yesterday, Mr Fenech appeared confident that in a month's time the statistics would bring the deficit down to roughly conform with the Budget projections.
He said it was difficult to say with precision how it would work out, because the NSO works with a different statistical system to that used for the government's projections. However, on top of the usual income tax payments collected in December, substantial backdated payments by Enemalta would change the picture substantially, he said.
"Because of its liquidity problem, Enemalta was late on a number of substantial payments for duty on fuels, VAT and even the national insurance for its employees... I cannot say with precision whether we will end with a deficit of 3.8, 3.7 or 4 per cent but nowhere near off the mark as this figure would suggest."
The government is expecting a shortfall equivalent to 3.8 per cent of gross domestic product for this year and 3.9 per cent for 2010. This means that Malta will not comply with the European Commission's demand to bring the deficit down to the Maastricht threshold of three per cent by the end of 2010.
According to the NSO statistics, during the January to November period outstanding debt totalled €3,951 million, an increase of €430.2 million compared to the same period last year.
Recurrent revenue stood at €1,909 million, a decline of €34.3 million compared to 2008. Total expenditure saw an increase of €105.2 million, reaching €2,320 million. This was mainly the result of higher recurrent expenditure that went up by €90.6 million, totalling €1,929 million.
* Note
In his Budget speech, Mr Fenech had actually projected a final deficit of €217.5 million but this figure includes the financial data of state entities apart from central government, which the NSO statistics do not. Hence for comparative purposes, the central government deficit was the one taken into account.