According to official data, published by the National Office of Statistics today, the month of February ended up with a deficit in government's finance. The deficit accumulated in the first two months of this year amounts to €62 million, representing a 436% negative change on the situation in the corresponding period of 2018, the Nationalist Party said.

In a statement signed by the spokesman for finance, Mario de Marco, the PN said the deficit in February, amounting to €8 million, points to a trend of monthly deficits going back to October. In that month government sustained a deficit of €27 million, followed by a deficit of €11 million in November and €55 million in January.

The data for December will be published later this month. Government needs to close of December with a surplus of €35 million to avoid closing the year with a deficit. The Opposition is calling on government to provide more information on this situation, de Marco said.

The Opposition has over the past years cautioned government on the accelerated increase in recurrent expenditure, at a time when the country is experiencing elevated growth rates. This expenditure is being financed by one-off or short-term revenue streams - such as proceeds from the IIP scheme – potentially leading to budgetary shortfalls in the medium to long-term.

This point was also made by the European Commission in the Country Report on Malta 2019, published on 27 February 2019. This report highlighted significant risks to the long-term sustainability of government finances. The report specifically points out "possible risks associated with financing permanent expenditure increases from potentially temporary revenue flows".  The Opposition is yet again repeating its calling for fiscal and political responsibility in the interest of future generations.

In its reply, the government said that the Maltese economy is growing at record levels. This is why government expenditure increased to allow for the introduction of measures announced in the budget, including a rise in the salaries of government workers. Year after year, the Labour government inctroduced measures to help people who need them most, and this enabled economic growth.

The government wants to put the Opposition's mind at rest with regard to the country's economic progress and financial situation.