Government debt increasing beyond 2010 targets - Charles Mangion

Mangion said this was €84 million over and above the forecasted deficit announced during Budget 2010 last year.

“These results reflect the dilettantism of the country’s financial management. Irrespective of the tax amnesties on income tax and national insurance contributions, which increased revenue considerably, and the removal of subsidies on utilities, and zero spending on the drydocks and early retirement schemes, national debt has reached €360 million,” Mangion said.

Mangion added that government had already gone beyond its self-imposed target not to borrow more than €200 million. “It must explain to the people and the European Commission why it is failing its targets.”

Managion said that while in 2009, the finance minister said debt was increasing so that there will be less debt in 2010, the opposite has happened with debt increasing over and above borrowing requirement.

“Between January and August of this year, VAT revenue increased by €33 million over the same period last year: excessively so, compared to the same levels in August 2007 and 2008 during the international financial crisis, when consumption was far more restricted. This high revenue can be related to the payment of arrears.

“And while €40 million were saved this year in energy subsidies, debt is still increasing. The people deserve better leadership.”