Budget will show sacrifices paid off – Gonzi

Today’s Budget would show people their sacrifices paid off, Prime Minister Lawrence Gonzi promised yesterday.

At the same time, he warned the international economic storm was far from over, with countries like the UK announcing heavy cuts that would see 500,000 government workers unemployed.

While boasting of record expenditure in sectors like health, education and social welfare, Dr Gonzi warned the country must remain competitive and attractive for investment.

The Budget would consolidate the country’s achievements while aiming to reduce the deficit, safeguard jobs and generate new ones. “We have to keep doing this without exploding our debt. It’s easy to hand out people’s money and be applauded for it but the bubble will eventually burst,” he said.

Money could not be wasted on unnecessary subsidies like on the shipyards, which used to drain the country of €40 million a year, Dr Gonzi added.

Opposition Leader Joseph Muscat called for a fair and responsible Budget, stressing the need to invest “enormously” in tourism.

He said the important hard-hitting measures would not be announced during the Budget, as had become normal practice with this government.

The government, Dr Muscat said, should find ways of easing the burden of water and electricity tariff hikes.