PN says it has been proved right about government's excessive spending

The Nationalist Party has urged government to change its spending habits in light of warnings surrounding high government spending.

The PN’s remarks come as the Malta Fiscal Advisory Council (MFAC), an independent government watchdog, flagged the fact that Malta’s spending trajectory means that it would exceed the EU’s recommended spending cap.

The MFAC stated that such high expenditure would leave Malta weakened if external factors kick in.

On Monday, the PN said that this confirms its concerns about the sustainability of public finances.

The PN remarked that the MFAC criticised what it described as spending in unproductive areas and urged government to redirect public funds towards investments such as infrastructure, education, skills development, and measures that promote sustainable economic growth.

The opposition noted that it raised similar concerns ahead of the most recent budget, but said these were ignored.

It was further reminded that Malta is currently subject to the European Commission’s Excessive Deficit Procedure.

The PN said Malta’s debt has now reached around €11 billion, adding that more than €260 million was paid in interest on government debt over the past year. The party said the Auditor General has also flagged this issue, warning that rising interest payments are reducing funds available for investment.

The party once again called on government to heed the advice of the MFAC, the Auditor General and European institutions, and to adopt policies that ensure fiscal prudence.