Malta’s debt up by €220 million
Published:
January 23, 2015 at 12:46pm
I’d imagine that the last two years or so have been a real Taghna Lkoll festa as they raid the sweet shop.
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http://www.independent.com.mt/articles/2015-01-23/local-news/Malta-s-debt-rises-by-220-million-PN-asks-where-this-money-has-been-spent-6736129293
The comments underneath the reporting of the above explain that a large percentage of the population do not understand GDP, debt and their relationship. Can somebody explain it in simple terms ? Two days ago national debt was said to go down, which was a gross fallacy of percentages. De Marco is right.
Am I to imagine that Joseph Muscat will be using the timing of the payment of Eur 250 million by China before 31st December 2014 to do the following in Quarter 4:
1. Increase the GDP figure through the Investment component.
2. Decrease the national debt (reduction in Enemalta debt/government guarantees).
And therefore show a further percentage improvement in the National Debt/GDP?
Just asking.
I am using the GDP formula as Consumption + Investment + Government consumption + Net exports.
In the Maltese psyche the notion is ingrained that the Nationalist government racked up millions in debt and therefore they can’t open their mouth now.
If you see the Times of Malta message boards you will understand.
Things we got for ‘PN debt’ include a new airport (including overhauled runway), a state-of-the-art hospital and oncology hospital, a flood-relief project, roads, the world’s most advanced telecommunications and internet infrastructure, a new power station, a new parliament, new ferry terminals, new ferries, a new freeport . . .
What have we got for the increased debt of the past two years?
We had to pay for the Tarzna and the 8000 members of staff hired just before the 1987 election. That’s around 1 billion euros.