Watch: Cost-Cutting Exercise To Reduce Public Deficit Ongoing, Clyde Caruana Confirms
Finance Minister Clyde Caruana has confirmed that the government is analysing what costs it can cut in an effort to bring down the national deficit.
Speaking to Lovin Malta, Caruana confirmed the government is committed to both keeping energy prices stable and bringing down the deficit.
“The last thing our economy affords is another shock to add to the many we already have, and the government is committed to ensure there is energy and price stability in fuels in the coming months and years,” Caruana said.
“We are fully committed to it and I know it is quite an onerous commitment but, as Finance Minister, I must ensure I do my utmost to ensure this while taking care of bringing down the deficit to ensure fiscal sustainability.”
Statistics show that Malta registered a €1.2 billion deficit at the end of 2021, equivalent to 8% of its GDP, making it the highest deficit rate in the EU.
Asked what cuts the government will make in light of this strategy, Caruana responded that “that is an exercise that is ongoing at the Finance Ministry to ensure that all the resources being spent by the government are being spent efficiently”.
The Finance Minister also said he wasn’t surprised by the findings of a survey commissioned by former Prime Minister Joseph Muscat, which found that consumer confidence has dipped significantly over the past year.
“The decline in consumer confidence was bound to happen, especially with what is occurring in terms of the economic background around us,” he said. “The significant increases in inflation don’t help, the shocks from outside are significant and it’s quite natural for consumers to react in that way. So of course I’m not surprised with those findings.”
What do you think of Clyde Caruana’s latest comments?
READ NEXT: Watch: Ambulance Drivers And Engineers 'Staying In Containers' At Gozo Hospital, Alex Borg Warns
