[WATCH] Government targeting 1.1% deficit for 2016

Constituted bodies in pre-budget consultation meeting with finance minister Edward Scicluna

The government is targeting a deficit of 1.1% during 2016, finance minister Edward Scicluna told a meeting of the MCESD this morning.

Meeting at the Ministry for Social Dialogue for a pre-budget consultation meeting along with minister Helena Dalli, Scicluna also revealed that the government would be borrowing a record low figure of €90 million.

The finance minister, who will later on today deliver a presentation to the media, reiterated that the budget was not merely an accounting exercise. Highlighting the importance of sticking to the parameters of the planning total, Scicluna said the goal was to reduce deficit and promote economic growth.

"We want to trigger economic behaviour that gives direction to the economy and translates into strong economic growth," he said, adding that the government could not ignore the expenditure pressure generated from certain sectors of employment such as former Enemalta and Maltacom workers.

Scicluna added that heavy investment was required to strengthen the country's infrastructure, a capacity needed to support new projects.