The government’s Pre-Budget Document gives the best certificate to the PN government in its analysis of the past 10 years but fails to outline the government’s proposals for economic growth and job creation, said shadow finance minister Tonio Fenech.
Addressing a press conference this morning to give the opposition’s reaction to the Pre-Budget Document, published yesterday, Mr Fenech said the document only names two specific proposals – to continue income tax cuts and addressing the fiscal structure, that is how to continue cutting the deficit.
While the latter proposal is simply what the EU is expecting, income tax cuts started under the previous administration. However, Mr Fenech added, Prime Minister Joseph Muscat had promised economic growth and consequently, one expected a better explanation and proposals to incentivise the economy in its various forms including tourism, financial services, manufacturing and SMEs, on which sectors there is no single proposal.
It is worrying that the document is described as a vision since this only includes points from the PN Vision for 2015. Moreover, although it mentions the tendering process for the building of a gas running power station, it does not speak of the promised water and electricity cuts.
The finance minister intends to go to Cabinet and propose the expenditure for each ministry, the document says.
“What if this is not enough? Would this result in new taxes or in services being cut?”, Mr Fenech asked.
He stressed that employment is not created at the snap of a finger and the fact that the government only mentioned plans to open new child care centres does not mean there will be more jobs for women. Incentives and business opportunities for job creation are necessary.
Furthermore, he highlighted that unemployment increased this summer when this should drop as a result of tourism.
The island needs economic growth for the government’s electoral promises to be sustained but the document does not reflect any of the promised “economic team”, “road map” and “green paper”, Mr Fenech said.