Mangion slams government's financial performance

The financial statements for 2002 reflected the precarious financial situation the government had driven the country into, Labour's deputy leader, Charles Mangion, said.

He said 80 per cent of the Lm51 million increase in government revenue in 2002 originated from taxation including VAT, income tax, licences, fines and tariffs.

At the same time economic expansion last year did not exceed the two per cent mark, showing how government income was increasing from taxation and not from real economic expansion.

Dr Mangion said the government should explain how profits from investments increased by nearly Lm9 million in 2002 when in the budget estimates for the same year such revenue was projected to be Lm2.2 million.

Dr Mangion also noted that the government's borrowing requirement for 2002 was Lm99.6 million while in the previous year it stood at Lm78 million.

Instead of reducing the deficit, the government had increased it, he said.

Dr Mangion observed that debts had increased despite the privatisation process and the financial statement clearly showed that interest on debts had increased to Lm75.7 million during 2002 from Lm71.4 million a year earlier.