The latest financial statistics showed that contrary to all its claims, the Nationalist government was failing in many of the aims it had set itself in the financial estimates for 2007, the Labour Party’s spokesman for parliamentary, financial and economic affairs Charles Mangion said.

The deficit had widened by five per cent, from Lm85 million in 2006, to Lm90 million in the first seven months of 2007, Dr Mangion said. VAT was also showing weaker returns when compared to the first seven months of 2006 – in that period last year VAT revenue had gone up by 5.5 per cent but in that period this year the rate had gone down by half to 2.8 per cent, or Lm2.7 million.

Dr Mangion said this confirmed that the rhythm of consumption was slowing. That slowing down confirmed that families were not benefiting from economic expansion and they were in fact seeing their income drop, as confirmed by Eurostat.

Although revenue from national insurance contributions had gone up by almost Lm6 million over 2006, this was being attributed to calling in arrears, not to an increase in employment. In fact in June this year, NI contributions revenue went down by 3.2 per cent compared to June last year, and by 1.4 per cent when compared to July. Had there been a rise in jobs creation, revenue would have gone up month after month when compared to 2006.

The picture the country’s finances presented for the first seven months of the year decried the prime minister’s vain words. The prime minister needed to give a clear explanation of his failure to achieve the financial aims he himself had set, Dr Mangion said.