The budget will be presented on Wednesday, 18 October, Prime Minister Lawrence Gonzi said yesterday.

Speaking at a party activity in Safi, Dr Gonzi said the government will be presenting a serious budget that will continue to improve the country?s finances, will reassure people that the future of the country is being built on strong foundations and that is also aimed at improving the quality of people?s lives.

Dr Gonzi said the Nationalist government had achieved a lot in government. Referring to the elderly, he said the government no longer saw them as just pensioners but as individuals who deserved a better quality of life.

“And that is exactly what the government has done. We have invested million of liri in improving their standard of living. We have built homes for the elderly, we have improved people?s pensions. We have totally changed St Vincent de Paule. Only last week, we opened a new wing at the hospital that cost Lm3 million,” said Dr Gonzi.

He said government?s finances had improved and that, for the first time in many years, the deficit had been brought under control and would this year be under three per cent of GDP.

“The impact of the rise in oil prices has not stopped us from investing in the country. We could have acted like misers and done nothing. But no, we invested in St Vincent de Paule, we built new colleges for our students, we built new roads, we restored town and village squares. We have invested in the environment. We have done so because we have strong public finances,” said the prime minister.

Dr Gonzi said that the country was moving ahead and investment was flowing in. He said the Labour party had accused the government of inventing things, “yet is the investment we are attracting an invention?”, he asked.

He said revenue from income tax had increased not because the government had increased taxation but simply because companies were making more profits and people were earning more.

Revenue from national insurance contributions had increased because more jobs were being created and more people were in employment.

Dr Gonzi said the individual remains a core element of the party?s politics, from the youngest to the oldest member of society.

He accused the Labour Party of “vandalising the future” and of “inventing many untruths”.

“We are moving forward, we have e800 million to spend as of next year. We are securing the people?s future,” he said.

Turning to education, Dr Gonzi said the government had invested Lm200,000 in 35 men and women to further their careers and specialise.

“We are investing in them, we are changing their lives, but that investment is worth it because when they come back, they will be contributing to society and the country?s well-being,” said the prime minister.

Education and Employment Minister Louis Galea spoke about the government?s investment in the education sector and highlighted the main points of what he described as a “revolution” in Maltese society.

“We have a modern economy because we have modernised the education system. Education is a process that moves with social changes, and big changes are under way,” he said.

Fewer people were leaving school at 16, said Dr Galea, and many were furthering their studies at MCAST or at university. The education system was open to everyone and today, the number of female university students exceeds the number of male students.

Nationalist MP Jason Azzopardi addressed the issue of reforms in the justice system and how the Nationalist Party was doing its utmost to reduce the backlog of cases at the courts and make it easier for the public to obtain justice when they seek recourse to the law.

Meanwhile, in a Press Conference held at the Party?s offices, Alternattiva Demokratika presented its proposals for the coming budget.

AD Chairperson Dr. Harry Vassallo stated that the sum of Lm 8 million the Government said will have to spare in the coming budget is insufficient. “Whilst we recognise the importance of meeting the Maastricht criteria, one of which is reducing the deficit to 3% of GDP, we believe that much more can be done in this budget without over-running the budget targets”, he added.

Dr. Vassallo said that AD is suggesting concrete proposals so that the sum available increases to Lm 18. AD is suggesting that the additional funds are raised primarily by an increase in the tax rate on banks and telecommunication companies from 35% to 40%. In addition AD is proposing that government steps up measures to combat rampant tax evasion by those businesses that unashamedly operate on an “open cash register” basis. “It is also necessary to work on reducing government costs primarily by clamping down on social security fraud and a reduction in government?s operating costs”, he further added.