Reference
is made to the article entitled “Where is the surplus? – Delia says economy
benefits the few rather than the many” published by the ‘The Malta Independent’
on Monday 2nd October 2017.
The article states that:
‘the
NSO created a fund to account for 70% of the flow of incomes from the IIP
scheme, and included this for one year, rather than three’.
This statement is not correct as it
is not the NSO that created the National Development and Social Fund, being
referred to in the article. The Fund was
created by the Government by means of Legal Notice 47 of 2014.
Up until September 2016, when the
Fund was not yet set up, the seventy percent of the contributions from the IIP
were temporarily held in the Treasury Clearance Fund (TCF) and were recorded as
revenue according to the respective time of receipt, in 2014, 2015 and
2016. Then, once the NDSF was created,
this was reported within the Extra Budgetary Units list where the transfer
between the TCF and the NDSF was reflected.
This transfer resulted in an equal expenditure and revenue transaction, which
did not impact the fiscal balance for 2016.
Mark Galea