Fiscal aims ‘on track’

The improvement in public finances registered between July and September, coupled with the positive outlook given last week by Standard & Poor’s, confirmed that Malta would achieve its fiscal targets, the government said yesterday.

In a statement, it noted that according to the latest official data, during the third quarter of last year the deficit had dropped to the lowest level since 2005 to stand at €29.7 million.

This positive trend was registered despite the reduction in income tax, which was supposed to cost the government some €27 million in lost revenue.

These results contrasted sharply with the predictions from the Opposition leader, who had insisted Malta would be forced to ask for a bailout, the government said.

In its reaction, the Nationalist Party focused on the national debt, saying it had risen to €500 million in the first 18 months of the Labour administration. This hike was the result of a soaring public service wage bill in the wake of the recruitment of some 4,700 new employees, it said.

The government’s only solution to increase revenue was to impose further taxes.