The budget proposes an expenditure of €2.9 billion, through which €340 million will be invested in the education and training, €378 million in health, €858 million in pensions and the social framework and €440 million in projects and capital investment.

Last year, the government opted to postpone the target of decreasing the deficit to three per cent given international troubles and their impact on the Maltese economy.

In the first half of this year, the Maltese economy experienced a fast growth rate and the Gross Domestic Product increased at an average rate of four per cent.

This came as a result of the sharp increases in exports, and higher private and public consumption and investments.

This growth is expected to continue in the second half of this year.

The employment sector has been giving encouraging signs and Employment and Training Corporation figures show that in the 12 months leading to June, the number of gainfully occupied persons reached 145,690.

In the same period, the number of persons engaged in part‐time work increased by 1,683, and went up to 29,251.

Last month the number of registered unemployed persons decreased by 866, compared with September last year.

The inflation rate in the 12 months to September showed a downward trend to hit 0.8 per cent, a reduction of 2.7 per cent.

The cost of living increase, calculated in accordance with the mechanism agreed with the social partners, registered at €1.16 per week.

The Gross Domestic Product is expected to increase at the rate of 3.4per cent, whilst inflation rate is expected to reach 1.4 per cent.

It is also envisaged that the economies of the country’s major trading partners will grow at a more moderate rate.

Therefore, next year, Malta’s economic growth will be expected to maintain such pace, at approximately three percent

Inflation is expected to go up to 1.8 per cent.