The Chief Minister has conceded people are feeling the pinch and finding it hard to make ends meet and that this is a dilemma for the Government.
The Government, he told Parliament, will continue listening to the people and will try to do more.
Fabian Picardo closed the budget session by attempting to clear up public misconceptions as well as counter-attack the Opposition's claims.
He said that when they get something wrong, they listen and change course- but that they get the fundamentals right.
Immediately after Fabian Picardo delivered his budget on Monday, the Government had to reverse a decision on a pollution levy after instant opposition to it.
Speaking on Gibraltar Today at the start of the week, the Chief Minister then added insult to injury by saying he, himself, was caught up by the measure because he'd bought a second hand Porsche that was over ten years old. This was an issue he chose to explain himself on today.
In his closing address Fabian Picardo wanted to make clear he and his government were not perfect, but that they had Gibraltar's best interests at heart.
With news of a possible demonstration this afternoon, the second this week, he chose to address issues raised by protestors point by point. The levy, he reassured them was dead and buried and he was going to "leave their cars alone."
The Chief Minister defended the right to protest, even saying he was willing to meet the demonstrators and would be reaching out to them, but the House unanimously opposed online, anonymous threats of criminal violence and personal damage. This he said, is not the Gibraltar anyone deserves.
Fabian Picardo had began his address saying his bite was worse than his bark- but said his bite would only be directed at facts, data and finances and not at personal insults.
He praised the newcomers to the House saying he'd been impressed by their energy, vigour and ability.
Specifically on the budget and on politics more generally, he said, these had to be relevant to the people and want to know about. Focussing on anything other, he added, degrades politics and the system in general.