The Nationalist Party is demanding an explanation and justification for budget overruns running into hundreds of millions of euro.
Speaking at a press conference this morning, PN Deputy Leader said NSO statistics for the period between January and November 2016 showed that revenue as well as recurrent and capital expenditure were mostly on track yet a month later the government asked for supplementary funds because of the overruns. The government has exceeded the 2016 budget by some €250 million.
Dr De Marco said the government had many questions to answer, including whether these overruns would affect the national deficit and debt and whether these would lead to a decrease in the allocation of specific line items.
The PN Deputy Leader said the budget system was not working as it should and the Finance Ministry was not doing a proper job of overseeing and controlling spending by ministries. The overruns could possibly be a result of unapproved spending by ministries.
Giving a few examples, Dr De Marco said €640,000 had originally been allocated for travel by the Office of the Prime Minister, which had then asked for an additional €1.6 million.
The OPM’s communications department had initially been allocated €520,000 but asked for an additional €480,000. In 2013, the department spent just €120,000.
Perhaps the most drastic increase was that requested by the Tourism Ministry for professional services. The initial amount of €9,000 jumped up by €1 million.
Dr De Marco said that the government might have had its reasons to pump up these amounts but it had to explain and justify the extra spend.
He also pointed out that the NSO had recently reviewed the GDP growth rates for 2014 and 2015 – and these were not marginal reviews. The original rate for 2014 was 3.4% but this was review upwards to 8.4%. The rate for 2015 went from 6.2% to 7.5%.
“When the NSO had slightly reviewed the GDP rate in 2007 the PL, then in Opposition, had called for the resignation of economist Gordon Cordina, then head of the NSO. Mr Cordina had resigned. We are curious to know that the PL’s reaction will be now that the NSO has made these drastic changes.”
Dr De Marco said questions about the overruns and the NSO reviews would be raised at the Public Accounts Committee.
Economy Shadow Minister Claudio Grech said the government should not spend carelessly just because it was raking in more money from taxes. “The argument that we should just spend more because the economy is doing well does not hold water.” He said the government should spend carefully and where it made sense, such as capital projects and social services. He warned that capital expenditure would this year go down to €160 million, and this was taking place at a time when surrounding countries were investing and upgrading their infrastructure.
Financial services spokesperson Kristy Debono also blasted the government over its exaggerated and unjustified spending of taxpayer money. “There is an opportunity cost that is being lost because the government has its priorities upside down. Rather than senselessly wasting money it should be investing in capital projects, businesses and job creation, social housing, free medicines for the elderly and a better transport system.”