Big Government getting Bigger

Eurostat has recently issued the publication Government Finance Statistics – Summary tables 2/2008. The Malta Government expenditure sheet shows some interesting figures.

1 Government revenue is getting bigger by the year. Compared to 1996 Government revenue more than doubled. In fact it increased by 106%. What does this mean to the economy? Consumers have their purchasing power reduced by such amount and the whole economy is deprived of that amount of resources.

2 Taxation has increased by 161% - again more than doubled. Since 1969 direct taxation had increased by 225% - more than tripled. Indirect taxation had increased by 120% - more than doubled. Weren’t we promised long time ago that income tax was to be reduced. At one time, one political party had the elimination of Income Tax as its battle-cry in one of the general election!

3 The total Government expenditure as a percentage of the GDP stayed practically the same = 42.6% in 1996 and 42.4% in 2007. Weren’t we promised a smaller government? What happened? Can anyone inform us why this happened? Or are consumers considered as dumb?

Everyone knows that since 1996, the services which were provided by Government decreased and not increased. Thus why are we spending so much more when we’re receiving less?

What is the Auditor General doing to see that our taxes are spent efficiently?

The Auditor General has an important function in a democracy. Is it standing up to its responsibility? Taxpayers demand an answer.