Fenech blames Labour’s largesse for higher €106 million spending

The Nationalist Party has greeted new five-monthly deficit figures showing an increase of €106 million in government spending, as a sign that the government was losing control of public finances.

“This has come about by increasing the deficit and national debt to assist people from the inner core,” shadow finance minister Tonio Fenech said.

“Of the €106 million increase, €29 million is being used to finance salaries for Labour’s inner core and the largest Cabinet ever,” Fenech said in a rejoinder to the PN’s claim that Labour’s highest-ranking appointees cost millions in salaries.

Fenech again said that while 15% of the increase in spending was for medicinals, “almost 30% was for the substantial salaries for the inner core, and ministries’ administrative spending for the largest Cabinet in our country’s history.”

Fenech said the figures showed that the government was not moving in line with the EU’s directive to cut down its deficit, and instead was stoking fears on the long-term sustainability of its finances.

“A stable financial position is crucial for foreign investment, and for the island to attract more investment, especially in the light of the severe decrease in FDI in the past year,” Fenech said, referring to a €1 billion outflow registered in the 2013 balance of payments.