Addressing a pre-budget public consultation meeting, Finance Minister Edward Scicluna this evening said that social protection systems promote an equitable and inclusive society, however they may give rise to dependency and passivity, and are prone to fraud and other abuse.

He said that over the past 15 months, the government had introduced measures that encourage more people to enter the workforce and contribute to society. The government will ensure that further incentives will steer people away from dependency, and encourage them to take on any available opportunities. This will allow the government to ensure sustainability of pensions, stipends and free health care.

Prof. Scicluna said that the private sector is the driving force of economy, and contrary to what the opposition is claiming, employment in the public sector has not increased, but rather remained stable. "This is a merely the way it is classified by the national statistics office. The PN chose to give it a political twist."

He added, that the government acknowledges recent publications by the competitiveness forum which show that Malta has slipped down in rankings, and will be carefully evaluated. However, he said, it is important to note that the government has managed to reduce the deficit to below 0.3%. 

During 2013, Maltese economy grew by 2.9%, compared with a marginal growth rate of 0.1% recorded in the EU. Latest data releases by the NSO shows that in the first half of 2014, the Maltese economy registered a robust growth rate of 3.4%.

In its pre-budget document, the government pledges to increase the rate of employment through a set if specific labour market programmes aimed at addressing particular challenges. It will continue to support the labour participation of parents, by introducing more free child care centres.

Prof. Scicluna explained that the budget takes a year to draft, and that was why, the Labour government passed the budget document put forward by the Nationalist administration before its dissolution.