Finance Minister Edward Scicluna rejected criticism by the Opposition that the country’s finances were not on track and that targets would be missed.
Winding up the Budget debate, Prof. Scicluna contradicted what shadow minister Tonio Fenech said and insisted the government had managed to cut the deficit from 3.7 per cent of the GDP to 2.7 per cent in 2013 in spite of the fact that the European Commission was skeptical and projected a deficit of 3.4 per cent.
The government was confident the deficit would drop to 2.1 per cent by 2015.
With the national debt below 70 per cent, Prof. Scicluna said this would be the lowest recorded since the accruals system started being used.
The previous PN administrations had left a massive national debt that amounted to €5.2 billion. Such a legacy meant the Labour government would have to pay €231 million in interest, a sum that exceeded the education budget.
The previous PN administrations had left a massive national debt that amounted to €5.2 billion. Such a legacy meant the Labour government would have to pay €231 million in interest, a sum that exceeded the education budget
After conducting an in-depth review, the European Commission said macroeconomic challenges no longer posed a risk to the Maltese economy. It also noted that the risk to the sustainability of national debt and the stability of the financial sector were kept in check.
Brussels gave Malta a clean bill of health in a new alert mechanism report and accepted the Budget without the need of any modifications. This was thanks to this government’s continuous work.
Prof. Scicluna said that, in the past, the deficit had spiked to 4.7 per cent. It was not surprising that the Commission had certain misgivings and mistrust.
Speaking on economic performance, the minister said that, while the Opposition embarked on scaremongering by saying that unemployment was rising, Eurostat figures showed that the jobless in Malta dropped to 5.6 per cent. This was the lowest rate recorded since 2000.
About 6,000 new jobs were created: for every job created in the public sector, five were generated in the private sector. It was clear that the market yielded positive results.
Credit-rating agencies considered Malta as having a stable outlook.
Maltese families believed that their lives were improving under this government. Central Bank data indicated that families had €8.8 billion deposited in Maltese banks, an increase of 15 per cent.
Speaking on energy, Prof. Scicluna said that the lack of planning by the previous PN government left Enemalta with a massive debt of €850 million. Some were even willing to accept €1 to sell the corporation. On the other hand, this government had a plan that was doable. Although the construction of the new power station was delayed, it would eventually benefit Maltese families.
Enemalta was now in a position to start paying its debts. It would pay its dues to the government and cut utility tariffs for businesses.
The government was working to have a public transport system that met people’s expectations. New routes would be set up and fares would not rise. The government wanted public transport that was used by the majority of people to ease traffic, reduce pollution and eradicate disease.
While the Opposition criticised the withholding tax, it was the PN government that had first introduced such a levy in 2005.
The government reduced the capping from 12 to eight per cent with regard to businesses and five per cent in the case of individuals. It was a revenue-neutral tax.
Concluding, Prof. Scicluna said this Budget focused on rewarding bravery and discouraging dependency. It met several people’s expectations. Through the measures contained in the Budget, the government would ensure that the wealth generated would reach everyone.