Updated - Adds video comments - Finance Minister Edward Scicluna said this morning that the government is planning on continuing with the three year programme of top rate income tax cuts announced by the former government and implemented by the Labour administration in this year's Budget.

Speaking during the launching of the pre-Budget document, Prof. Scicluna said the pre-Budget document showed that the government was on the right track.

That included planning for the continued widening of tax bands and reducing the top rate of income tax.

However, he said, no finance minister could ever say 'definitely' or 'never' because much depended on prevailing circumstances.

So far, however, there was no reason preventing the government from continuing with the tax programme, he said.

The tax rate for those earning up to €60,000 was this year reduced from 35 per cent to 32 per cent.

As from next year, the rate is set to go down to 29 per cent and drop further to 25 per cent in 2015.

The 35 per cent rate will continue to apply for those earning over €60,000.

PENSIONS - THIRD PILLAR SCHEMES TO BE INTRODUCED

On pensions, Prof Scicluna said the government planned to introduce an optional third pillar pension (where people contribute to a private pension). There would be incentives for people to join such schemes and guidance on how people should invest.

He said the government was committed to reducing energy tariffs. However, this was not a Budget issue but a matter falling under the planned agreement between the government and the company chosen to build a new power station.

ECONOMIC STABILITY

Prof. Scicluna said the focus of the Budget would be on maintaining economic stability and ensuring everybody benefited from growth.

He said that total recurrent revenue between January and June was €104 million higher than in the first half of last year. Total expenditure rose by €60.9m.

Actual expenditure this year was €11.7m less than the Budget estimate.

The Central Government Deficit improved by €43 million from €284 million in Jan-June 212 to €241 million in January-June this year.

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