Official figures have shown that Malta’s deficit increased by €64 million compared with last year, but Finance Minister Tonio Fenech yesterday said there was no cause for concern.
The minister also noted that, with Government having no 2013 Budget to work with, expenditure was likely to be muted in the run-up to March’s general election.
Revenue the Government is due to collect in the first two months of the year would even out the figures and keep Malta on track to meet its deficit and debt targets, the minister said.
“These statistics are issued on a cash basis, so they don’t necessarily reflect the final figures,” Mr Fenech said.
“Income tax revenue for the first two months of any given year is tallied up with the previous year’s income, as is January VAT revenue. So while expenditure stops at the turn of the year, Government revenue continues to flow in for a further couple of months.”
Asked why this would make a difference, given that last year’s provisional totals also included this caveat, Mr Fenech pointed to economic growth.
“It isn’t the same as the previous year, because the economy has grown and that, in turn, bumps up tax revenues,” he said.
Official statistics...
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