Government finance data released by the National Statistics Office point to further increases in recurrent expenditure and a substantial drop in capital expenditure, the Nationalist Party said this morning. 

The drop in capital expenditure of €13 million is the major contributor to the lower consolidated fund deficit registered in January 2017.

A comparison between government expenditure data for January 2017 and January 2015 points to some worrying and unsustainable trends, PN deputy leader Mario de Marco said.

Capital expenditure went down from €30 million to €10 million, representing a 68% drop. Recurrent expenditure during the same period went up by €29 million or 13%. Public service wages increased by €5 million (9%), operation and maintenance expenditure by a further €5 million (35%) and interest expenditure by €3 million (23%).

Total revenue in January 2017 increased by €51 million when compared to the corresponding period of 2016. However, nearly half of this increase was due to an increase in receivable grants amounting to €22 million, Dr de Marco said.

Total government debt in January 2017 increased by €61 million compared to the previous year and €301 million compared to January 2015.

"The data released today points to certain unsustainable spending patterns. Capital expenditure, essential to ensure that our economy remains competitive and that our infrastructure is capable of meeting present and future demands, is decreasing year on year. On the other hand, recurrent expenditure is shooting up as government continues its spending spree not least through the creation of hundreds of positions of trust across the public sector," he said.