Prime Minister Joseph today confirmed that the Cafe Premier property will be handed over to the Valletta local council, after the Finance Ministry inadvertently uploaded a working version of yesterday’s budget speech on its website which alluded to this possibility.

The government paid the Cafe Premier owners €4.2 million in what was described as an amicable bailout.

Dr Muscat said a “genuine mistake” led to the publication of this document, which also put the frighteners on classic car owners who were led to believe they would only be able to take out their cars on weekends.

The Prime Minister fended of criticism that the traffic congestion problem was not tackled in the budget. He said that a number of infrastructural measures were announced, and he will be speaking about further solutions to the problem next week in Parliament.

Traffic congestion is not a new phenomenon he said, and is also the result of more people going out to  work and the ever increasing number of new vehicles being registered in Malta.

Weighing in on the same issue, Deputy Prime Minister Louise Grech said a wider culture shift is needed and alternatives modes of transport need to be explored.

The Prime Minister said the budget has been well received by the social partners, families and businesses alike.

He said this is the third consecutive budget that has seen a fall in income tax rates, and 160,000 people will benefit from further tax cuts.

Dr Muscat also pointed towards the rise in pensions, which is the first such rise in 20 years.

The reduction in energy tariffs alone has injected €80 million into the economy, and experience has shown that when tax burdens are removed, government income actually increases.

He said the money raised from the 50 cent tourist tax will be put into a fund administrated joint by the government and MHRA, and the money will be spent on infrastructural upkeep.