Prime Minister Joseph Muscat today denied calling Leader of the Opposition Simon Busuttil a fool in yesterday's post-budget speech, despite video evidence showing the contrary. He was responding to questions put forward by journalists at a post-budget press conference held at Castille.

At the press conference, which was called just half an hour before it started, Dr Muscat also claimed that prior to the Labour Party's electoral win, the Nationalist Party constantly refuted claims that Labour would be able to lower electricity and water rates as  it was proposing at the time.

He questioned why Simon Busuttil would now criticize the lack of reduction in these rates, even though the current government was able to reach its target, since the previous government did not think it to be possible.

It was then put forward to Muscat that Busuttil was not alone in his request for lower energy rates since the Chamber of SMEs, MEA and Chamber of Commerce all expressed concerns that the energy rates were still high.

The Prime Minister guaranteed that energy rates will not be increased, and that in the coming year when the price of oil rises around Europe the country will be able to reap the benefits.

He also addressed the concerns around the subsidies in rental prices which was "unchartered territory" for the government. Whilst he said that there was a possibility that it could end up like the school transport scheme introduced last year which simply raised prices, they government has put in place mechanisms to guarantee this would not take place. For example the rental properties would now need to be registered with government and pay withholding tax 15%s.

He said that at least the government was seeking solutions to confront the problem, and while it may not be the perfect solution, it is a starting point. In fact the budget called for further consultation on the matter. 

 Muscat opened his address by reiterating that the budget presented yesterday had the sole aim of reaching out to those sectors of society that needed it the most. He said that after stabilizing the economy, the government was now seeking to address problems faced by people who had fallen behind.

He said that the budget has to be seen in the light of the roadmap that the Labour Party had drawn up, which in the last three and a half years had seen a transformation of the country from one that was facing a rising deficit and rising unemployment to one when the deficit was being lowered and unemployment was at a record low.

He went on to repeat some measures that were mentioned in the budget, saying that the measures to be introduced are sustainable. The country's deficit will continue to decrease next year, going down from the projected 0.7% in 2016 to 0.5% next year.

The measures in the budget can be defined as 'prosperity with purpose' which help real people in their everyday lives, according to the Prime Minister. He focused on the policies which will help the marginalised in society like low income pensioners, low income couples with children and the disabled specifically amputees.

Minister of Finance Edward Scicluna spoke of the measures directed at pensioners which assist both lower and middle income groups to back up his claim.

Deputy Prime Minister Louis Grech maintained that the credibility of the budget lies in its ability to produce sustainable long term measures which balances society and economy. He said that prior to the election it was the Labour Party's economic vision to reduce debt, the deficit and inflation. He then said that once the government was able to achieve this they were able to introduce structures were everybody could benefit from the economic prosperity on the island.