The budget reflected people’s aspirations, as a result of the consultation process the government held before the budget measures were formulated, finance parliamentary secretary Tonio Fenech said.

The budget would result in people having more money at their disposal as a result of the income tax cuts which also translated into encouraging people to work more. Because of the stronger economy, the government could also improve children’s allowances.

Mr Fenech said other benefits included the subsidy on interest rates for the purchase of the first home, and the elderly receiving the full cost of living increase. This was a prudent budget which consolidated the country’s achievements and was the first step for the 2015 vision of Malta as a centre of excellence, he said.