Opposition Leader Alfred Sant warned Labour supporters against the “fictitious” measures the government was planning to take in the upcoming budget.

In its budget later this month, the government will reduce income tax, the fuel surcharge and air departure taxes, Dr Sant said during a political meeting in Zebbug.

Although the Labour Party was four square behind such tax cuts, Dr Sant said people needed to be aware of the things going on in the background, the government was collecting tax arrears, postponing payments and reducing the spending on infrastructure to the tune of Lm16 million.

Dr Sant’s comments followed a story in the Labour Sunday newspaper KullHadd which claimed that the tax cuts in the coming budget would amount to Lm16 million, and would include a revision of tax bands and the complete elimination of the departure tax.

When contacted, Parliamentary Secretary Tonio Fenech said the MLP was clearly trying to raise people’s expectations to undermine whatever the government had up its sleeve. The government has already made its intentions clear in its pre-budget document and it would act responsibly with the country’s finances, he said.

“The budget hasn’t been drawn up yet, so I can assure you that the Labour Party doesn’t have any leaked document, as it might be insinuating,” Mr Fenech added.

During his half-hour speech, Dr Sant took Prime Minister Lawrence Gonzi to task, with the Labour leader constantly questioning his credibility and even accusing him of fabrications.

He said Dr Gonzi boasted about the creation of 4,300 jobs last year and yet the National Statistics Office and the Employment and Training Corporation were not in a position to confirm the figure, Dr Sant said. Likewise, despite the Prime Minister’s claims, the Malta Union of Midwives and Nurses and the Medical Association of Malta were not aware of the migration plan to the new Mater Dei Hospital.

Dr Sant asked why Malta’s cost of living remained among the steepest in Europe. He called on the government to rein in the cost of regulatory agencies, which he said needed to be streamlined.

Taking the cue from the resignation of the Malta Tourism Authority board, Dr Sant listed 18 individuals who had quit their post since Dr Gonzi took over at the helm. Dr Sant told those present the MLP needed to sustain its advantage over the Nationalist Party. The MLP would keep drumming into people’s heads that time had proven it right over issues like the deficit, the EU, taxation, jobs and the agriculture sector.

On the other hand, nobody could accuse the MLP of deceit. Although the party did not claim it may heal the country’s ills by a magic wand, it has a serious strategic plan to govern, he added.