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Clarification to article on The Malta Independent 2nd October 2017

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

Head of Unit, NSO

Public Finance