Mater Dei hospital is supposed to have medical equipment worth €150 million but the inventory only accounts for €67 million worth, Prime Minister Joseph Muscat revealed last night.

Giving a glimpse of the yet unpublished Dalli report, an X-ray of the hospital taken by former European Commissioner John Dalli, Dr Muscat said he was shocked to learn that there was a trend of double payments made for the same equipment.

Reacting to the Opposition leader’s criticism of the Budget, Dr Muscat yesterday said he was still not satisfied with the health sector but insisted the Government had inherited a lot of problems.

“There’s a running expenditure of €230 million that is unaccounted for at Mater Dei... this is the result of mismanagement,” he said.

In a two-hour speech, Dr Muscat made a pitch for the “hard-working middle class” as he lashed out at the Opposition’s “childish criticism” of the Budget.

He insisted his government wanted to remove the culture of dependency on handouts and make work worthwhile.

“The Budget creates incentives to encourage people to work,” he said, listing various measures including free childcare and lower income tax rates for middle-income earners.

He then reiterated the mantra that his government was “unashamedly pro-business” because by being so, wealth and jobs would be generated.

Dr Muscat dispelled doubts cast by Opposition Leader Simon Busuttil on the Government’s pledge to cut utility tariffs and reiterated water and electricity bills will be reduced by an average of 25 per cent in March.

“The Opposition is constantly measuring our performance by their own yardstick but we are different: we deliver what we promise,” Dr Muscat said to thumps of approval from Government MPs.

In a deviation from the Budget, Dr Muscat also spoke about drug decriminalisation, framing it as “a challenge for society”.

“Should we continue treating victims like traffickers? This is a courageous decision we have to take,” he said, admitting that as a parent he was “torn inside” by the debate.

Society had to re-evaluate how to help drug victims rather than make their life worse.

Addressing the cash-for-citizenship controversy, Dr Muscat took up Dr Busuttil’s challenge and read out the advice given by the Attorney General on the Opposition’s pledge to withdraw citizenships acquired under the law put forward by the Government.

The advice, which was later published by the Department of Information, states that arbitrarily withdrawing citizenship acquired through the Individual Investor Programme would create serious constitutional problems.

“If the Opposition goes ahead with its threat to withdraw citizenships when in government it will face legal challenges and the cost will be borne by taxpayers,” Dr Muscat warned.

While insisting his was not a perfect government, the Prime Minister accused the Opposition leader of “bad economic analysis” and “big mistakes” in his Budget criticism.

Contrary to what Dr Busuttil said, the VAT repayment on car registration would be paid back in full and health expenditure had actually increased not dropped. In a jibe at Dr Busuttil’s election campaign statement that with a Labour government the country would be begging Brussels for a bailout, Dr Muscat insisted it was his opposite number who was asking for a bailout for his party.

He closed his speech by saying that another site would be found for the creation of a sports village that was once promised on the site of the former White Rocks complex in Pembroke. There would be a call for expressions of interest in using the now derelict site and others for a yacht marina on the Valletta side at Sa Maison, Pieta, and for a new car park in Valletta.

A committee for sustainable development in the south would also be set up.