The Budget will be judged on how it tackles the cost-of-living, how it protects jobs and how it fights corruption, Opposition leader Joseph Muscat said this morning.

However, he added, the government has already made all this impossible by "irresponsibly" planning to raise the water and electricity rates.

"This increase was announced before the Budget probably so that it won't be mentioned there. The government will say that there are no tax increases in the Budget, but what is this if not an enormous tax?"

Speaking at a PL activity, Dr Muscat said the utility bills hike would continue to "destroy" families and jeopardise jobs. The tariffs were being raised carelessly, at the worst possible time, sending out the wrong message to businesses and consumers alike. It also reflected "dishonesty" from the government because the rates were not reduced in the same way as oil prices when these fluctuated.

Dr Muscat criticised the Minister of the Infrastructure for not announcing the exact tariff increases and instead adopting a "wait and see" stance.

Dr Gonzi, he said, was seeking to gain €86 million from the tariffs increase, which constituted 1.5 per cent of the economy, which was the same amount that was invested to stimulate jobs.

"So first there are a lot of programmes and initiatives for economic stimulus, and then all that money is sucked back up. No wonder consumer confidence is about the lowest it has been in history."

The government, he said, was going in for the Budget while facing a series of accusations of poor judgement and corruption. He said that Finance Minister Tonio Fenech and the Prime Minister both needed to "come clean" and give a better explanation following serious accusations levelled against them. Dr Muscat highlighted a newspaper story about Mr Fenech being owed a "favour" from property-brokers involved in the Jerma Palace Hotel (See minister's denial in separate story).

Dr MUscat said the Budget was expected to feature many of the proposals made by the PL, which was a good thing, but all the proposals would be undermined if the utility tariffs were raised.

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