Government debts much larger than targets - PL

Government’s financial statistics released by the National Statistics Office (NSO) for the first seven months of 2010 confirmed that despite the removal of subsidies on water, electricity and gas national debt until the end of July had risen by 100 million over the targets set by the government until the end of the year.

In a statement issued by Charles Mangion, PL spokesman finance and the economy, it was explained that according to estimates made by Prime Minister Lawrence Gonzi and Finance minister Tonio Fenech, the budget national debt was raised to €4,030 million, but by the end of July it had risen to €4,129 million.

The increase in debt raises the interest cost, costing the Maltese taxpayer more than half a million Euros in interest in the first seven months of this year.

Although government statistics show a reduction in the deficit of €46 million for the first seven months of 2009 this is mostly due to an increase in income tax of €41 million.

Mangion said that despite the sacrifices made by the people the deficit for the first seven months of 2010 remained at €40 million, more than the first seven months of 2008, the year of the general election, when public spending exploded.

Mangion said, “The figures show that families and businesses are paying higher bills, not taking subsidies and not taking advantage of the tax benefits promised to them.”