The government is earning more through taxes, spending more and increasing the national debt that now exceeds Lm1.3 billion. This means that every person in Malta has a debt amounting to Lm3,500.

The same statistics show that the economy is not developing, to the extent that income from national insurance contributions fell by Lm2 million. This is because fewer people were working.

Apart from this, during the first six months of the year the Central Bank of Malta contributed Lm6 million less to the Consolidated Fund, Dr Mangion said.

The Nationalist government was boasting of having cut the deficit by Lm16 million.

What the government was not saying was that in the first six months of the year it had earned Lm5 million from the “sale” of the Lotto Department and Lm5 from one-time concessions on yachts.

On the other hand, it failed to include the payment of Lm6.5 million for the Maltese Embassy in Brussels, an expense that will increase by Lm3 million when the embassy is refurbished.

The Lm17 million increase in income was not the result of a stronger economy but of the income mentioned earlier, the three per cent increase in VAT and the introduction of a five per cent VAT on 400 items, including medicinals.

Economic activity was showing negative signals in all sectors, Dr Mangion said, and the government was not doing much to regenerate it.

Government is failing to address the lack of competitiveness, bureaucracy that has led to more inefficiency and spending and the lack of direct productive investment.

The MLP deputy leader added that the government is not controlling its current expenditure.

Government entities have increased their current expenditure which, in the first six months of the year, amounted to Lm140 million.