Budget being drafted with no tax increases, Robert Abela says

He still warned that all taxes must be collected to ensure economic and social development

Government will not introduce new taxes in the coming Budget, the Prime Minister announced on Friday.

During the Labour Party's Annual General Conference, Prime Minister Robert Abela stated that the party began drafting the Budget document a few days ago.

While declaring that there will be no increase in taxes, he emphasised the point that all taxes must be collected in order to achieve a balance between economic and social development.

"In the coming budget we will make sure to strengthen wages, and see that taxpayers are given what they deserve. We will increase spending on health, education, and on social expenditure - but we will be sure to do this carefully," he said.

He also announced that there are now less than 1,600 people that are registered to be unemployed.

"This is the lowest we've ever had in history. Not even before the pandemic did we have less than 1,600 people registered," he said.

Abela added that a new initiative is being finalised to help people who cannot obtain loans due to illness or disability. 

"This will be another initiative that shows that this government doesn't ignore anyone's realities. And that what is promised, is delivered."

The Prime Minister reflected on government's handling of the pandemic, stating that government always took responsibility for the decisions taken.

"Where we didn't make the best decisions, we humbly adjusted," he said. 

Abela remarked that medical experts warned at the start of the pandemic that Malta could see thousands dead, and 50,000 people out of work. He admitted that the shock was huge, "but we rolled up our sleeves immediately".

He later said that the Budget will reflect the reality of the pandemic, which has not passed by completely.