This year's Budget hinged on the government's success in exceeding its deficit targets, Prime Minister Joseph Muscat said this evening.
Speaking at a press conference following his finance minister's gruelling almost three-hour Budget 2017 speech, Dr Muscat said the "social" Budget was in large part thanks to excellent deficit reduction results.
"Had those numbers not been met, everything said tonight would have remained in the realm of fantasy," the Prime Minister said. "The things we've handed the people are affordable and sustainable."
Finance Minister Edward Scicluna began his Budget speech by announcing that the government was expecting the deficit to fall to 0.7 per cent by the end of the year - an improvement on the 1.1 per cent figure initially projected.
Dr Muscat thanked Prof. Scicluna for his work, saying he felt "privileged" to work alongside him and deputy Prime Minister Louis Grech.
Asked about the lack of traffic-related measures, the Prime Minister said that experts all said the solution lay in making it less affordable for a person to use their car.
"Raise licence costs, increase petrol prices ... this government is not willing to take that sort of approach," the Prime Minister said.
Challenged about the Budget's failure to make mention of the middle class, Dr Muscat argued that the government had reduced the maximum income tax rate from 32 per cent to 25 per cent during this legislature.
"And last year, we reduced income tax on the so-called middle class," the Prime Minister added.
He expressed optimism about the future. "Malta will continue to grow, now we've entered a new phase in which our strength is better distributed among all."
Photo: Darrin Zammit Lupi