State development entity Projects Malta has outspent its original budget for 2016 by three times as much, in the wake of a sharp increase in expenses related to project management fees and legal services.

This was confirmed by Prime Minister Joseph Muscat who yesterday told Parliament that the original allocation of €1.1 million had to be increased by a further €1.925 million, resulting in an overall budget in excess of €3 million.

Replying to a parliamentary question filed by Opposition MP Claudette Buttigieg, the Prime Minister justified this spike saying Projects Malta needed additional funds to reach its increasing number of “ambitious” projects aimed to improve people’s lives.

Dr Muscat pointed out that expenses related to legal services and project management fees in connection with jobs delegated to this State entity amounted to €1.6 million.

Moreover, a subvention of €590,000 was allocated to three entities within Projects Malta – Trade Malta (a joint venture with the Malta Chamber of Commerce, Enterprise and Industry), Yachting Malta (a partnership with the Royal Malta Yacht Club) and the Mrieħel Foundation which is tasked with the upkeep of the industrial zone.

Fending off criticism that the government was losing control of public expenditure, the Prime Minister noted that additional expenses for 2016 over and above the Budget (supplementary estimates) accounted to 3.6 per cent of the original allocation.

In contrast, in 2008, under the PN government supplementary expenses had soared to 16 per cent of that year’s Budget, Dr Muscat added. Furthermore, he noted that in 2013 Malta was placed under the excessive deficit procedure by Brussels, in the wake of a higher than expect deficit which was racked up during the last year of the Nationalist administration.