Updated: Government should create stability, not uncertainty - PL
Government's priority was to safeguard jobs - ministry
(Adds ministry's reaction)
Statistics on the government’s financial situation in the first 11 months of the year showed that the country’s finances were weak, Labour spokesman Charles Mangion said.
Statistics, he said, were published on Christmas Eve so that they would get lost in the festive spirit.
Dr Mangion said that although on November 9 the government forecast that the deficit would be €258 million by the end of the year, it had already reached €410 by the end of last month.
For the government to reach its aims, it required a much bigger income than forecast. The government had forecast an increase of €164.5 million in ordinary income but this had in fact dropped by €34 million in the first 11 months of the year.
Dr Mangion said that the government had decided to increase water and electricity rates without giving any consideration to the economic and social impact. This was grievous political irresponsibility.
The international situation had shown that governments who invested wisely during the recession were now getting out of it and calculating how to reduce their intervention in the economy.
The Maltese government was, on the other hand, still deliberating in which areas it should invest and rather than incentivising the private sector, it was burdening it unjustifiably.
The country needed a clear direction to get out of the recession and the government should stop creating uncertainty when its duty was to create stability.
MINISTRY'S REACTION
In its reaction, the Finance Ministry said that the past year had been characterised by the government’s efforts to combat the international economic and financial crisis but the opposition tried to give the impression that the situation in Malta was much worse than in other countries.
It said that the government would get substantial income in December.
But although the government believed that the country should remain financially sustainable, its priority this year had been to safeguard jobs.
Eurostat figures showed that all EU countries were experiencing an increase in their deficit, most of them at much higher rates than in Malta.
The opposition repeated its criticism without offering solutions saying only that the government should help the private sector more.
The ministry said that the European Commission this year praised Malta for having one of the strongest fiscal stimulus packages.