Budget likely in 11 days' time

The government is planning to present its Budget on Monday, October 31, Prime Minister Lawrence Gonzi said yesterday.

He said the date was not certain yet, "but that's what we are aiming for".

He said the Cabinet yesterday discussed the social partners' responses to the government's proposals for dealing with the increase in the price of oil.

It would meet again on Tuesday when, he said, a decision is expected to be taken.

"We focused on the reactions we had from the Malta Council for Economic and Social Development. The dilemma we are faced with is that we have to find Lm50 million to make up for the increase and to sustain it, the surcharge on water and electricity bills would have to go up from 17 to 102 per cent," Dr Gonzi said.

The government was trying to find ways to minimise the rise in the surcharge, he said.

"It is obvious there are social cases that have to be borne in mind. The industry, tourism and manufacturing sectors have to be kept in mind too because it is these sectors that provide employment."

The government has presented the social partners with a number of options to absorb the rise in the cost of the country's fuel bill: raising the surcharge to 102 per cent; putting the price of fuel at the pumps up by 20c a litre; or shouldering some of the burden itself by raising taxes or borrowing more.

In a three-hour meeting of the MCSED on Monday, the constituted bodies underlined the need to spread any tax increases fairly.