The largest ever tax cuts will be announced during Monday's budget speech, Robert Abela reiterated on Sunday.

Speaking during a political event, the prime minister said a widening of tax bands would result in the largest-ever reduction in income tax.

Abela said the budget will once again strengthen welfare and pension support.

The prime minister confirmed that the government will continue to pour hundreds of millions of euros into keeping energy and fuel prices stable.

Abela's government has steadfastly shunned calls for a plan to phase out these subsidies.

He said the budget day has now been transformed into “budget week”, with individual ministries making announcements about new initiatives throughout the week.

The prime minister warned against “populist declarations” denigrating the need for foreign workers.

He said these workers are vital to supporting Malta’s economic growth.

Abela said the Home Affairs Ministry was spearheading a labour migration policy to streamline the flow of migrant workers into the sectors where they were needed.

He said the government had not shied away from clamping down on sectors like the cab industry where there were already enough workers.

The prime minister contrasted Malta’s economic growth rates of 4-5% to the slumps experienced in other European economies.

“The word unemployment no longer exists in our vocabulary,” he quipped.

He said a new collective agreement increasing salaries across the civil service was an example of how the wealth created by the economy was being shared.

Abela said the new increases were over and above any sectoral agreements that have been reached.