The national deficit will narrow to 1.6% this year and 1.1% next year, Finance Minister Edward Scicluna said in the Budget speech this evening.

He said further financial consolidation remained a government priority. At the same time, the government wants to ease the tax burden on the workers and continue to make Malta an attractive investment destination.

Other priorities are fair distribution of wealth, better social services, safeguarding the environment and strengthening the infrastructure.

The government also wants to improve the way the public service operates.

Prof Scicluna said the economy is projected to grow by 4.2% in real terms by the end of this year. Growth is expected to moderate to 3.6% next year.

The increase in jobs is expected to be 2.3% this year and 1.3% next year while unemployment will drop from 5.8% this year to 5.6%.

The deficit next year is expected to narrow to 1.1%, or €102 million. Government debt next year will be 65.2% from €68.3 this year.