Prime Minister Joseph Muscat said this morning that the Budget was the third in a row where the government demonstrated it did not plan according to electoral timeframes and it was following a plan to further grow the economy. 

Speaking in a packed Labour Party club in Naxxar, Dr Muscat said all three budgets presented by the present government were in stark contrast to the budgets of the PN governments where people were asked to be patient and make sacrifices, for one reason or another.

It was also a marked difference from the budgets of any former government where taxes went up after the election and eased off as fresh elections approached. 

This government reduced income tax and power tariffs immediately and introduced free childcare. In so doing, the people had more spending power, thus boosting the economy. With a stronger economy, the government was able to boost social welfare, as it had done in this budget.  

The latest budget reduced income tax for those who had not benefited from cuts to date. This conveyed the message that the government would reward those who worked hard. 

Dr Muscat went over the various Budget measures, noting that while retaining the €5,000 grant to property first-time buyers, duty for people who bought and renovated houses in Urban Conservation Areas would be cut to 2.5%. Measures were also being taken to ensure that buildings were not allowed to become derelict when heirs could not agreed on a sale. 

The budget, he said gave particular attention to those at risk of poverty, notably pensioners. The aim was for the minimum pension to eventually rise to at least 60% of the average wage. Therefore pensions had gone up in a significant manner for the first time in 20 years. The increases were between €4.50 and €8.90 per week, which somebody else had described as ridiculous. 

The government, Dr Muscat stressed, wanted to reduce dependence on social benefits. Last year's budget and this year's therefore, included measures to help those who went to work and were then weaned off social benefits. 

In the budget, Dr Muscat said, the government confirmed its business-friendly credentials by helping tourism and small businesses, among other sectors. New initiatives were being launched, like Property Malta and Education Malta, to promote those sectors abroad. Focus was also being placed on maritime activity.

Where possible, Dr Muscat said, the government would involve the private sector in its initiatives. Among these were the restoration of Lower Fort St Elmo. However it was not enough to restore places. They had to be put to use, ensuring that such sites did not fall into disrepair once more.