News • February 1 2004

Savings of Lm3 million on deficit projection
Stringent expenditure controls and more efficient revenue collection towards the end of last year have left a positive impact on government’s deficit control drive and public coffers are expected to end 2003 with a deficit of around Lm105 million, Lm3 million less than the deficit projection made in the November budget.
Finance Minister John Dalli had projected a deficit of Lm108 million by year’s end and the latest data indicates that government has bettered its projections.
Speaking to MaltaToday, Mr Dalli reiterated government’s commitment to bring the deficit down to three per cent by 2006. The deficit currently stands at around six per cent of GDP.
"I am confident that we can reach that target, unless something extraordinary crops up on the international stage," Mr Dalli told MaltaToday.
The Finance Minister however insisted that the next six months were crucial for reforms. "The next six months are crucial and we have to deliver to ensure reforms are put in place to build a welfare society on sound footing. Government has to ensure expenditure translates into value for money and we have to continue our drive to curb waste and abuse."
Mr Dalli reiterated his stand that he hopes to see the reforms in place by June.
"The Malta Council for Economic and Social Development is currently preparing its technical report. It is working actively on it but no date has yet been set for its conclusion. As regards reforms in the health sector, government is committed to prepare a blueprint of what it intends to do that will eventually be discussed with the social partners. On the pensions issue, as agreed last year with the social partners we are waiting for the World Bank report of which the first indications should emerge by end February."
Minister Dalli said economic growth prospects for 2004 look good and the country should be expecting a turnaround in the second half of the year.

kurt@newsworksltd.com