Labour leader reiterates ‘risk’ of starting new year without approved budget

According to Labour leader Joseph Muscat, Prime Minister Lawrence Gonzi "cornered himself" when he declared that a vote on Budget 2013 would be a vote of confidence.

No date has yet been announced as to when government will be presenting the budget in parliament. Usually this takes place during the first two weeks of November.

During a phone-in on One Radio, Muscat reiterated that the government was risking taking the country into a new year without an approved budget.

"We have an MP [Franco Debono] who has made his position very clear and a government who's escaping parliament like it was the winter cold. Gonzi says budget is a confidence vote and we don't trust government," Muscat said.

The Opposition leader said the Prime Minister had arranged the "parliament calendar to suit his needs - for political and electoral reasons".

According to Muscat, the Nationalist government was buying its time in order to have a long electoral campaign, "while leaving business faced with political instability, endangering the economy".

Speaking on the St Philip's Hospital, Muscat welcomed government's decision to present the €12.4 million lease-and-buy deal to parliament before it is signed.

He however insisted that there was much to be discussed, including how government was planning to expand the hospital while patients would be receiving treatment at the same time.

"Will they be receiving treatment at a construction site?" Muscat asked.

Muscat also expressed his criticism of government's management of the country's finances, insisting that it was hiding debt by creating further debt.

"This Prime Minister inundated our country's coffers with debt, mismanagement of the financial sector and with the result that today we have a deficit of 4.6% and debt amount to €5 billion," he said.

He added that the country was now used to "the usual tricks" where during the presentation of the budget government says its deficit is under control and under the 3% threshold.

"Sadly, this would be done by cutting down on capital investment instead of attacking government's careless spending. I am sure that people are aware of how artificial government is with its management of public finances," Muscat said.