Prime Minister Lawrence Gonzi has accused the leader of opposition of being superficial when he accuses the government of hiding debt.
Asked about Dr Muscat's accusation that the government was hiding expenditure, such as in the case of the city gate project, which was not mentioned in the budget, Dr Gonzi said capital investment bore fruit and gave a return making the country more attractive and increasing tourism.
This permitted Malta to project itself as a country which offered a particular experience.
Dr Muscat, the Prime Minister said, mixed capital expenditure, which was a one time investment with recurrent expenditure, which had to be made each year.
The Prime Minister said that when the government closed the shipyards saving €25 million a year in subsidies, it helped reduce the country's deficit and eventually debt.