Labour leader Joseph Muscat is right in saying that Prime Minister Lawrence Gonzi is putting the country’s economic growth and employment in danger as he tries to cling on to power. Despite knowing that the budget for 2013 might not be approved in parliament and that starting a new year without a budget will harm the country, Gonzi is prolonging this instability hoping to gain time and manage to catch votes somehow.
The country is in a difficult financial situation with government missing its deficit and debt targets. Gonzi promised to have a budget surplus by 2010 and the deficit has now climbed to 4.6% while public debt is over €5 billion.
Government is spending more on serving public debt than on education. Muscat said on Sunday that government will resort to its usual trick of giving the impression that it is controlling the deficit by cutting capital investment and hurting the country’s future.
A responsible government would try to cut waste and corruption and not capital investment. Mismanagement and poor planning are borne by taxpayers.