Government’s spending patterns unsustainable, PN warns

The Nationalist Party has again warned that the government’s spending patterns – marked by rising recurrent expenditure and declining capital expenditure – is unsustainable.

PN deputy leader Mario de Marco cited recently released national statistics which showed that capital expenditure plummeted from €30 million in January 2015 to €10 million in January this year, representing a 68% drop.

Recurrent expenditure during that same period increased by €29 million (13%). Public service wages increased by €5 million (9%), operation and maintenance expenditure by a further €5 million (35%) and interest expenditure by €3 million (23%).

Although total revenue in January 2017 increased by €51 million when compared to the corresponding period of 2016, de Marco noted that nearly half of this increase was due to a €22 million increase in receivable grants.  

Elsewhere, total government debt in January 2017 increased by €€61 million when compared to the previous year and €by €301 million when compared to January 2015. 

“The data released today points to certain unsustainable spending patterns,” de Marco said in a statement. “Capital expenditure, essential to ensure that our economy remains competitive and that our infrastructure is capable of meeting present and future demands, is decreasing year on year.

“On the other hand, recurrent expenditure is shooting up as government continues its spending spree not least through the creation of hundreds of positions of trust across the public sector – a fact that was noted by the International Monetary Fund in their recent report on Malta’s economy.

“While government is finding solace in ratios, the undeniable fact remains that government debt in absolute terms shot up over the past four years. This debt will have to be carried by future generations.”