Prime Minister Joseph Muscat said this evening that the Budget is a follow up of previous Budgets and part of aplan to continue to boost the economy and living standards.
He also said that consumers got the “best deal” in the fuel price cuts which will come into force next January as government’s utmost priority was to stabilise prices at the pumps.
Dr Muscat was reacting to criticism that fuel price cuts would have been bigger had the government not raised excise duty on petrol and diesel by three cents.
As from the start of next year petrol will go down by three cents whereas diesel will go down by four cents.
Addressing a news conference at Castille Square, soon after the Finance Minister had delivered his budget speech in Parliament, the Prime Minster justified government’s decision to increase taxation on fuel.
“Comparison with the EU average prices can only be made next January. It may well may be that in three months' time prices in Europe will start rising, and the opposite will be happening here,” Dr Muscat said.
Dr Muscat said the main measures of the Budget were another step in the implementation of Labour’s road map for the country. He noted that for the first time in some 20 years, pensions had been increased while 160,000 people would benefit from a reduction in income tax.
The Prime Minister remarked that one of the major challenges ahead was the ever increasing demand for beds in homes for the elderly. He cautioned that even though the waiting list for government homes had been reduced from 2,000 to 1,400, in a few years time this would rise again and exceed 3,000. Each resident in a government home cost taxpayers €18,000.
“This is not sustainable and we have to look for alternative models,” he said.
In view of this the government will be rolling out a scheme through which half of the minimum wage to employ a carer would be funded by the government.
“In this manner we are encouraging old people to remain in the community while at the same time easing the pressure from government homes,” he said.
Dr Muscat noted that under such model the cost for taxpayers would be about €5,000 for each carer.
Dr Muscat speaking at a press conference outside the Auberge de Castille this evening.