Financial situation 'likely to worsen'

The deputy leader of the Malta Labour Party, Charles Mangion yesterday said the government deficit had climbed to Lm141 million by the end of 2003, which meant a deficit of Lm31 million more than in the same period the year before.

Dr Mangion noted that according to the budget speech the deficit was expected to be cut back from Lm132 million to Lm108 million.

He said the deterioration resulted in spite of the fact that income from taxation had gone up by Lm7.6 million. The government's expenditure, he said, had increased by Lm39.4 million. He called on the government to control expenditure in the corporations and foundations it had set up as well as on capital investment, such as the Mater Dei Hospital.

It appeared, Dr Mangion added, that the country's financial situation was likely to worsen when one took into account the statement by the Central Bank that showed that the country's reserves were dipping due to lower income from exports and tourism.