Families carrying €25,000 national debt share – PL
Matthew Vella
Labour yesterday urged the government to exercise caution in the next budget, after families and businesses incurred yet another increase in fuel prices.
The party said the country’s financial state was not encouraging, despite the increase in utility bills, taxes and the small increase in wages and salaries.
The PL said that latest statistics for the January-May 2009 period showed less income for government, a higher expenditure of some €60 million, and a €460 million increase in national debt over a 12-month period.
The PL said every family in Malta and Gozo was now carrying debt of €25,000 in terms of its share of the national debt.
“The increase in spending is not owed to Lawrence Gonzi’s claims that jobs were being saved in light of the international crisis. The NSO statistics confirm that the increase in deficit was attributable due to increase in social security payments, medicine arrears, and the drydocks workers’ retirement schemes,” the PL said.
Labour added that government’s capital expenditure had decreased by 9%, despite promises during the last budget to increase capital spending. “In the first five months of 2009, the government used just €9.3 million of EU funds – much less when compared to the same period last year.”
Labour finance spokesperson Charles Mangion said that the increase in social benefits this year was less than the increase in 2008. “Comparing the 2008 period to the previous year, one notes that social initiatives have indeed slowed down. This is reflected in the number of pensioners who are denied supplementary aids when they go beyond the ceiling by just some euros,” Mangion said.
The Labour MP said the reason for this was that capping had not been adjusted periodically. “When pensioners lose their supplementary aid, many times they lose out on all subsidy on energy tariffs. These are the harsh realities faced by society’s most vulnerable people,” Mangion said.
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