Government spending in 2012 reaches ‘electoral levels’

The increase in spending by government ministries has reached 'electoral' levels last seen in 2008, with expenditure between January and June shooting up by 10% over and above the same six months in 2011.

An analysis by this newspaper of the latest government finance statistics, which excluded spending on capital projects, shows ministries and their departments were spending more money than 'regular' years, averaging €91 million over and above the first six months of 2011.

In the year of the 'austerity cuts', political instability and the Pullicino Orlando breakaway, government increased its spending well above previous years - a spike confirmed by an established trend of increasing spending during crucial election years.

In the 2008 election year, between January and June government ministries spent 13% more than the same period in 2007.

From then on, recurrent spending during this six-month period slowed down: in 2009, spending was 5.5% over the previous year; in 2010 it was 1.6%; and in 2011 spending was reduced to 0.3% below the previous year's.

So far, at a total of €1.2 billion in spending between January and June, government expenditure has reached exactly 49.8% of this year's budgeted €2.45 billion in recurrent expenditure - excluding loans made to the Greek republic and guarantees for the European Financial Stability Facility.

The target spend for 2012 is exactly €89 million more than what was spent in 2011 - €2.36 billion.

MaltaToday's analysis excluded spending by the Office of the President, the House of Representatives, the National Audit Office, and the parliamentary Ombudsman.

The latest Treasury data for the January-May period shows that the two ministries which spent the most so far are the finance ministry, where spending increased by 70%, or €34.2 million over the same period in 2011; and the health ministry, where spending increased by 20.7%, or €24.3 million - these two ministries alone accounted for two-thirds of the increased spending between January and May.

By May, the finance ministry had already spent 67% of its 2012 budget.

Capital spending levels are still low: by May 2011 the government had spent 37% of its budget. This year, the government has only spent 24% of its massive €425 million capital spending budget.