The government yesterday defended its financial record so far this year and called on the opposition to be serious and not have its head in the clouds.

Finance Minister Tonio Fenech insisted that one should not be amateurish and speculate about finances in the middle of the financial year but, rather, wait for the end-of-year results.

The minister was reacting to comments by Opposition Leader Charles Mangion who called on the government to explain why it has failed to reach its financial targets.

Dr Mangion noted that recurrent expenditure in the first six months had increased to more than €123 million when the government had estimated that it would increase by €66.3 million over the whole year. The deficit had exploded, increasing by €80 million over the projected figure while public debt already exceeded the government's target by €70 million. Mr Fenech said the government had been faced with a choice when preparing the budget for this year: continue "playing safe" to reduce the deficit or cut income tax rates to leave more money in people's pockets amidst increasing oil and food prices.

Despite international crises, the economy grew by 3.5 per cent, which led to an increase in government income of €57 million in the first six months.

Mr Fenech said the €30 million increase in assistance to Enemalta to keep the surcharge at 50 per cent had the biggest impact on government finances.

The public expected less criticism and more substance from the new generation of the Labour Party and Mr Fenech invited the opposition to respect the consultation process for the upcoming budget.

The government was still determined to reduce the deficit and achieve a balanced budget by 2010, he added.