Prime Minister Robert Abela played down inflation woes, saying that there is the reassurance that government income is a positive and strong one.

Speaking in an interview on ONE Radio, Abela spoke about facing international challenges on three main principles: wisdom, responsibility, and sustainability.

Abela said that while there are several expenses in light of current situations, namely inflation and the war in Ukraine, government's income from income tax as well as VAT, is increasing. Abela said that this gives the necessary peace of mind for the intensifying preparations for the next Budget.

“In the meantime, statistics and facts reassure us as sales in services and industry are increasing, while tourism is also recovering well,” Abela said.

The National Statistics Office however, revealed on Friday that by the end of July 2022, the Government’s Consolidated Fund reported a deficit of €514.9 million. In the first seven months of 2022, Recurrent Revenue amounted to €3,014.5 million, 14.7 per cent higher than the €2,627.7 million reported a year earlier.

The largest increase was recorded under Value Added Tax (€130.4 million), followed by Income Tax (€120.4 million), among others.

Abela continued to say that in addition to a strong Budget, assistance is being given fully, especially in the energy sector, where prices remained stable.

He said that President of the Eurogroup Paschal Donohoe had praised Malta’s advances in recovering the economy post-pandemic, mentioning also that the country’s rate of unemployment remained below 3%.

In addition to incentives such as the wage supplement, strong Budget and additional aid, Abela said that the recovery plan for the €300 million in European grants has also been commended.

Abela also spoke about the visit he made to the Valletta Cruise Port, saying that compared to last year’s numbers, that of 150,000 passengers by ship, this year there has been around more than half a million.

“The recovery will continue, and we will exceed the arrivals we had in 2019. Our goals, however, are not to always compare with 2019, but we want to go beyond that,” he said, adding that this sector brings in €100 million per year for the country.

Abela spoke of cruise ship companies which have chosen to make Malta their base port, showing trust in the country.

He also said that the number of tourists who stayed in hotels in the second three months of the year are more than three times than last year.

On the subject of security, Abela said that one cannot become a sensationalist or populist in this matter, saying that the Opposition, in their opposing views to foreigners in Malta, have showed inconsistency within the party.

Abela said that the pressures of irregular immigration have increased, but whenever incidents such as fights break out between foreigners, the response should not be to adopt a position of ‘us versus them.’

The Nationalist Party had called for foreigners caught breaking the law to be deported immediately.

He said that when merited, Maltese authorities and the courts have always deported foreigners, especially in instances where refuge in the country is not merited. He said that there have been instances of hundreds of people being sent back to their country as they did not meet the requirements to enter Malta.

Abela said that consequences follow after fights between foreigners, as well as Maltese people, and there should not be an artificial capping on foreign nationals in Malta, as they help Malta’s economy and tourism. He added that there will be an increase in police presence in problem hotspots.