Deficit reaches €90.9 million in Q3

Anthony Mizzi

Jan 13th 2010, 18:46

When will the country's administration manage the country's finances and ASSETS like they do their own private investments?

That would certainly result in a SURPLUS.

Paul Smith

Jan 13th 2010, 15:59

Alexander Morana
The Global debt based finance system is a ponzi scheme.

victor borg

Jan 13th 2010, 15:55

this govt. keep spending as if money grows on trees.A good example is the st.George
square in Valletta. On just the inauguration gonzipn spent no less than €141,770.They keep
borrowing and we have to pay the highest taxes in the eu.The defecit increaces every year
and we can hardly pay the interest on these loans

Alexander Morana

Jan 13th 2010, 15:47

Igalea that is a State sponsored Ponzi scheme what you are referring to.
Mr. Briffa, your concept of basic economics is the same to all the past and present Greek Ministers of Finance. Look where Greece is now!

Paul Smith

Jan 13th 2010, 15:41

lgalea

Money is debt - in a debt based fractional reserve banking system. 97% of all the money in circulation was at some point issued as a debt - bank credit

A flawed system on a finite planet - but as long as VI's (vested interests) think they can outwit geology - the system chugs along

Muscat. Pat

Jan 13th 2010, 15:24

@ Joseph E Briffa.
Surely this is a PN Catch- 22; the more debt, the more deficit and the more unemployment taxes and misery; the quality of life will get better!

lgalea

Jan 13th 2010, 15:01

Joseph E Briffa
That's ridiculous. How many more thousands of flats and houses are we going to keep building? This is apart from the fact that the debt is government debt not private debt. Creating jobs in the construction industry? Can you tell us how many Maltese citizens and how many illegal immigrants are seen at construction sites? And who benefits most from these projects? Is it not the contractors?

Furthermore, when our economy was booming, the MPC (Marginal Propensity to Consume) was about 82% which means that for every 100 euros 18 were not put back in the economy by being spent but were saved. Seeing that people are not even making ends meet how can they spend more?

This is apart from most Government bonds etc being taken up by banks and other BIG FAT CATS, not the ordinary people. What we have in Malta is the Government continuously issuing bonds to pay previously issued bonds and their interests and then reissue other bonds to pay the other bonds in a vicious circle.

Muscat. Pat

Jan 13th 2010, 14:50

Tumbling exports,tumbling imports, gaping current-account defict, fearsome national debt, and nasty recession makes gloomy reading and sounds as if it purports to a distant third world country, but it is not; this toxic broth has been cooked at home!
And yet only a few months ago, the "finanzi fis-sod" man, the local "uomo del monte"- Dr Gonzi,- vowed that he was the one, who will give us "serhan il-mohh"!
What magical politcal recipe is he going to use to bail us out of the mess he brought us in?
Sky-high electricity water and sewage bill, and for tourism, new tax on hotel beds!
Next time round when the elections come,Dr GonziPN is going to find it hard to sell his fairy tales and cock-and-bulls, again!

Joseph E Briffa

Jan 13th 2010, 14:32

The Eur3.9 billion is practically all money invested by locals in government stocks which have a higher yield than money invested in bank accounts. . So it's not worrying; it would have been worrying if this were a foreign debt. Besides this 'debt' yields some Eur200 million per annum by way of dividends to investors of which some Eur30 million is ploughed back by the Exchequer by way of income tax. This leaves some Eur170 million in people's pockets alot of which is spent thereby generating business, creates jobs and generates VAT to the Exchequer. Moreover the adminstration uses this money for capital projects which, again, stimulate the economy by creating jobs in the private sector, particulkarly the construction industry. So this public debt is far from a worrying thing as it is a means of generating money in people's pockets. In fact the quality of life of the Maltese has never been so good. All developed countries have this so-called national debt which is never settled.

ALEXANDER PACE GOUDER

Jan 13th 2010, 13:48

This is bad news indeed. Can someone explain what exectly is going on. A few days ago we read and were told that the Economy was recovering. I do not want to be negative and do not wish to enter the Political Comments which appear sometimes. It is now more then clear that the policy of Taxing the People is backfiring on the Government. This is going to be worst when the Electricity and Water Bills come into force. We are still in time. Other EU Countries are taxing less and therefore leaving more money in peoples pockets. SPENDING Money makes the (world) ECONOMY GO ROUND. I fully agree with the comment by G.PISANI- and whilst at it so Enemalta raise the Bills and the man in the street, Business, Hotels,Factories feel the pinch. Then the Government is sending us Cheques to make good and last Sunday we hear again that the Goverment will be helping Factories which will have problems. Tajba din kollox bil maqlub qed issir. A sugestion: Mela no increase in Bills and these monies (millons of Euros) can be given to Enemalta unless there is some EU Law which states that this cannot be done.

P.Cassar

Jan 13th 2010, 13:42

And Brussels was saying yesterday that Malta has increased its GDP!!!
What statistics are being forwarded to Brussels???

Ronald Zammit

Jan 13th 2010, 12:58

Well, these figures gives a clear picture of our financial situation. Definitely, `Mhux kollox miexi fuq ir-rubini' and the ` Finanzi fis-sod ' never prevailed. GonziPN had proofed to be totally incapable of controlling the deficit mainly by the wrong handling of / and unecessary expenditure, like the money spend in the inaguaration of the Palace square and many many more other similar cases. This reminds me of the famous quotation which is a trade mark of the PN : MONEY NO PROBLEM !! but everyone knows now that the PROBLEM IS MONEY!!! and the main culprit is the GonziPN inefficient administration.

G.Pisani

Jan 13th 2010, 11:47

The Government is killing our businesses. That is the main thing that keeps a country's money flowing. No business = no jobs = no income tax = less revenue for government = higher utility bills to make up for the loss = less money in people's pockets = back to square one (no business)

Andrew Cachia

Jan 13th 2010, 11:41

Locally induced!!. This is a result of Bureaucracy, increase in taxes and tariffs, new authorities andgross inefficiencies, arrogance and pettiness within the civil service and public procurement

Joe E Galea

Jan 13th 2010, 11:32

I remember the Gonzi saying that we will have a surplus by the end of 2010. As things are, I am sure this will never happen.