Prime Minister Joseph Muscat told timesofmalta.com tonight that the Budget was a surprise for those who thought that the Government would not keep its electoral promises.

He said this was a Budget which rewarded hard-working families through further reductions of income tax for top earners and those in the middle class.

This Budget also formally announced a significant reduction of energy and water tariffs.

Overall, he said, this was a Budget which made work pay. It showed families that the government with them and for them.

Addressing a news conference later on, he said this was a Budget which treated people as people, a Budget which had started to implement Labour's roadmap

Estimates were conservative because the Government preferred to err on the side of caution. "We do not want to project an overtly positive outlook," he said.

The Prime Minister said that the EU's reaction to the Budget was expected in the next two weeks but indications were that this would be positive.

Dr Muscat speaking at a press conference in St George's Square with Deputy Prime Minister Louis Grech and Finance Minister Edward Scicluna.