'Budget deficits should be against the law'

Azzjoni Nazzjonali leader Josie Muscat said yesterday that balanced budgets are healthy for the economy and therefore budget deficits should be made unlawful.

Dr Muscat was commenting on remarks by Labour leader Alfred Sant who said that reaching a balanced budget by 2010 would not be his government's main priority. "Dr Sant can say what he wants but AN thinks that a balanced budget is vital for our economy to provide a sense of stability and enhance the islands' competitiveness. We are proposing that, by 2011, Malta should have a surplus and deficits should become illegal," he said.

Dr Muscat admitted it will be difficult for his party to break the "duopoly mentality" as this would require a significant shift from the political system which has dominated Malta for decades. However, he said AN is proposing a different approach to politics where the country would be taken to new heights and things would be done differently. AN wants businesses, the backbone of Malta's economy, to have to deal with less red tape and people should be given incentives to work and create more wealth.

"The civil service needs a shake-up. It is unacceptable that civil service employees treat Maltese businessmen badly out of envy," he argued.

Dr Muscat said AN is in favour of a much leaner government.

"There should be no more than seven ministers, local councils should be rationalised and certain government departments should be combined. We are proposing that the VAT and inland revenue departments should become one and the same applies for the social services department and the ETC," he said.

Dr Muscat was making his comments during a meeting with a delegation from the Malta Employers Association headed by president Pierre Fava, which presented its electoral proposals to AN. The proposals include the need to incentivise work and to increase the number of women in employment.