Alternattiva Demokratika said today that warnings to Malta by the Fitch credit rating agency should not be under estimated.

Arnold Cassola, AD spokesman for the economy said the agency was stressing that the Government was focusing on revenue growth without embarking on concrete measures to reduce its expenditure.

Of bigger concern was the reduction in income tax which further created a hole in government finances.

He said it was doubtful that the Government deficit could be lowered to 3% of GDP by the end of this year. The Pre-Budget document clearly showrf that domestic expenditure had declined resulting in loss in revenue from Customs/Excise duties, licenses, taxes and VAT.

"Also of great concern is Fitch's confirmation that Malta's total public debt, including Enemalta and Government guarantees, amounts to a staggering 90% of GDP, in line with Spain,France and UK. AD insists that that the former Nationalist government's and the present Labour Government's misleading habit of quoting the total public debt at 74% of GDP (excluding Enemalta) is merely playing around with figures and is not realistic.

"Forging ahead with an expansionary budget, after the former Nationalist administration had failed to respond to the fiscal deterioration of 2012, could cause greater problems to the state of Maltese finances," concluded Prof. Cassola.