Finance Minister Tonio Fenech stressed yesterday that economic growth and fiscal consolidation will be the twin aims of next week’s Budget.

Speaking to The Times Business he said: “We have never separated growth and fiscal consolidation because both are essential for a country’s economic well-being. Over the past years we have carefully tackled our deficit, we are on target to reduce this to 2.8 per cent of GDP by the end of this year and are confident of reducing it further next year.

“At the same time we will introduce the necessary measures to encourage economic growth but this will be done in a careful, targeted and calculated manner. We will not introduce a stimulus package which we cannot afford, as this can have disastrous consequences, as we have seen in some countries.”

Mr Fenech said the Budget will focus on those sectors which can bring about increased economic growth, adding that a clear message will also be sent out regarding the government’s support for Air Malta. “A provision will be made for Air Malta,” he stressed.

The Finance Minister, who presents the Budget in Parliament on Monday evening, said the government had avoided tax increases in this legislature when dealing with the country’s deficit and the general thrust of the Budget would continue along these lines.

“This does not mean, however, that the Budget will be immune to any possible tax increases,” he added, “but over the years we have avoided such increases and prefer to go for keeping expenditure under control and encouraging economic growth.”