Government cuts deficit by €150 million in 2014

The deficit has been reduced by €150 million between January and November of this year, government said today.

In a statement, government said that the deficit stood at €189 million, reducing it by €153 million when compared to the same period under the previous PN government in 2012.

This contrasted with the opposition’s predication that Malta would need to be bailed out under a Labour administration, government said.

“NSO figures also show that in the three month electoral campaign in 2013, the previous government increased the national debt by the same amount in the following 20 months,” government said, adding that national debt in the last three months of the previous PN administration was seven times as much as the increase under the current administration.

“(PN leader) Simon Busuttil and (former finance minister) Tonio Fenech’s economic vision would have spelled disaster for the country’s economy,” the statement added.

Government explained that since taking office in March 2013, income tax revenues increased by €142 million despite the income tax cuts.

“The 20% increase indicates the increase in income and shuns the opposition’s claim that wages are waning,” government said, adding that VAT revenues also increased by €90 million.

“In the coming year, government will redouble its effortsd to further strengthen the country’s finances and create more opportunities for Maltese families.”