Sant's budget analysis 'superficial'

Prime Minister Lawrence Gonzi said yesterday that the analysis of the budget by the leader of the opposition was superficial and blatantly incorrect at least on one point.

Speaking during an uncustomary press conference held back to back with Dr Sant's reply to the budget speech, the Prime Minister alleged that Dr Sant had made a blatant mistake when he said that the government was projecting to recover some Lm2.5 million more in taxes for 2006 from homes for the elderly.

The revenue was not new income but appeared so because the funds previously made part of the consolidated fund, he said.

"For reasons of transparency we decided to move the account from the consolidated fund to a fund for the elderly. It is an accounting procedure which Dr Sant is calling new revenue. I'm surprised he makes such mistakes," Dr Gonzi said.

With regard to the doubts cast by Dr Sant on the statistics presented by the government to sustain its argument that the economy was recovering, Dr Gonzi said the Labour leader's argument would be turned against him when the figures are confirmed, acknowledging, that till December, the government had presented projected estimates.

He pointed out that IMF had already reviewed the statistics to compile its report, the EU and other agencies will soon follow suit, he added making the argument that such agencies do not accept flawed statistics.

Dr Gonzi said Dr Sant did not come up with alternatives or proposals despite the criticism, adding that there was not even a reference to the pension's reform final report tabled in Parliament just before the budget speech.

Asked by The Times whether the government itself had prepared its reaction to the report, which was initially published as a non-government White Paper, Dr Gonzi confirmed that the government was still to take a position on the final report, which, he added, will be in the coming days.

The Times also asked about a point in Dr Sant's speech that there was no transparency in the way the surcharges relating to the hikes in international oil prices were arrived at and what steps, if any, the government had taken to cushion the effects of rising international oil process.

Dr Gonzi said the government had already. made such information public.

The Prime Minister will reply to Dr Sant's speech in Parliament tomorrow.