In one of my first speeches as Prime Minister I asked to be judged by my deeds, not my words. Today, with a fourth budget on the table, I invite you to take stock of our country with that declaration as a benchmark.
The working principle at the heart of my government is two-pronged: To build a credible and sustainable economy and to give a better quality of life to all our families. Without the first, the second is impossible. Both are fundamental to families growing stronger.
Budget 2008 is the clearest signal so far that our principle is working.
Do we have a credible and sustainable economy? The facts speak for themselves. Euros will become our currency in a few weeks' time because our economy has qualified for the premier league of Europe. In the first six months of this year, it grew by 3.6 per cent in real terms, the deficit has been pushed below Lm50 million and inflation has plummeted to 0.8 per cent. Investment and employment have been at a record high. And of course, in the next five years we will be injecting €855 million, funds we managed to obtain from the EU. This is the bedrock on which Budget 2008 has been built.
Have we delivered a better quality of life? Again, the facts are inescapable. Built on these solid foundations, Budget 2008 opens up opportunities to those who want them, gives an extra push to those who need it and shows solidarity with those who cannot do without our help. That is what the Nationalist Party in government has always been about. For the third year running we have not increased taxes and for the second year running we have decreased them. This is the real test of the vibrancy of our economy.
Every child is now eligible for the Children's Allowance which has been increased from Lm52 to Lm107 a year. Families received tax credits for their private kindergarten and their children's sports training fees. We have increased the duration of paid maternity leave and given women returning to the workforce a tax holiday.
From Budget 2008 our pensioners received the same cost of living allowance as everyone else. We gave them the facility to work and still receive their full pension. Those living in a private home have received a Lm860 tax credit transferable to their families if they are the ones paying for the service.
Youths and students have also found their rightful place in this budget. With immediate effect, we will be subsidising the loan on their first home (worth Lm50,000 or less) for the next 10 years. And tax on property has been decreased.
Tens of thousands of students will be benefiting from new computers and laboratories in their schools. So far, we have refurbished 40 schools and built new ones. Now we will be investing another Lm6 million to do more. The University, Mcast and Junior College have received more funds and we have allocated new funds for our students to further their studies locally and abroad.
On the health front, Mater Dei will now be fully operational, a breast screening programme will be developed with all stakeholders concerned, and the Pharmacy of Your Choice Scheme will be extended to the entire country. On the social front, we have increased allowances to families with members who have a disability, families who are fostering and to orphans.
Finally, the environment also features prominently in Budget 2008. Among other measures, more arterial and residential roads will be built. We reduced taxes on cars, appliances, solar heaters and other equipment which save energy or do less harm to the environment. And Maghtab and Salini will be rehabilitated and the National Park at Ta' Qali will be extended.
Budget 2008 is an election budget. But not for the reason normally cited. Rather, for its opposite. It champions opportunities not opportunism. Principles work, PR gimmicks do not. Like you, this government knows where it stands today and where it is going tomorrow.