The General Government deficit for 2014 stood at €168.3 million, or 2.1 per cent of GDP, the NSO announced today.

The result was hailed by Prime Minister Joseph Muscat, who said the government had achieved the target it set with the EU, and the deficit was the lowest in two decades.

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The NSO said the gross consolidated debt amounted to €5,417.4 million or 68.0 per cent of GDP.

In 2014, General Government net borrowing (or deficit) went down by €26.1 million from €194.4 million recorded in 2013.

The general government deficit was equivalent to 2.1 per cent of GDP, down from 2.6 per cent for 2013.

The general government debt amounted to €5,417.4 million, an increase of €176.2 million from 2013 and stood at 68.0 per cent of GDP.

In a press conference, Dr Muscat said the result achieve belied those who had claimed that the government would not be able to achieve its target.

The result, he said, had been achieved without the governemnt imposing austerity measures. Indeed, the government had reduced income tax and the utility rates and taken a range of other measures including free childcare for all. The government's revenue, he said, did not include the citizenship scheme because revenue there would take time.

The name of the game was economic growth, not austerity, he said, and the government was running the country on the same business model as a private business.

He pointed out that the debt, at 68% of GDP was even lower than the government's original target of 70%.

Asked if the EU would lift the Excessive Deficit Procedure which it had placed Malta under, Dr Muscat said Malta had done its part, and he was optimistic that the EU would remove Malta from the procedure.

The aim for this year is to narrow the deficit further, to 1.6 per cent.