Spending overruns putting deficit target off-track, says Vella

Government's economic programme is veering off-track, according to Labour MP and chief finance spokesperson Karmenu Vella, who said the deficit target in the first quarter of 2012 had been overstepped by €87 million.

Vella said that Malta could expect its deficit to step up by €160 million in 2012, pouring cold water over claims of the sustainability of public finances as claimed by the government.

"National debt has increased to €4.6 billion. Adding €100 million in Greek loans and €15 million to the EFSF, all this debt reaches €4.79 billion. By April, the annual debt target had already been exceeded by €122 million.

"Government must explain whether it has any faith in achieving its own targets," Vella said.

The Labour MP blamed spending overruns of 11% due to maintenance costs increasing by €5 million in the first quarter, when this was supposed to increase by only €2.5 million for the entire year.

Additionally, social benefits increased by €57 million when these were projected at €37 million for the first quarter.