Finance Minister Edward Scicluna presented the 2020 Budget on Monday. This is a review of the salient elements reported and measures announced.
The Budget Measures
The COLA for next year will be €3.49 per week while pensions will increase by €7 a week (inclusive of COLA).
There will also be an additional day of leave to be given to all workers. Tax on overtime at 15% on first 100 hours. Additional government bonus of €15 to cover increase in cost of milk, bread
Property: Interest-free government loans for under 40s who cannot afford 10% deposit on property. First-time buyers scheme extended to properties worth up to €175,000. Benefit to increase to €6,500. Grants for building contractors to buy quieter, cleaner running machinery.
Social Benefits: People with 25-year service pension can have their pension computed again on reaching pensionable age. Supplementary allowances for low income pensioners will be increased to €150 euro per annum. Disabled people who cannot work will have pension increased in line with minimum wage. It was also announced that there will be a €300 grant for every newborn or child adopted
The Minister of Finance announced that there will be an equal pay for equal work to be introduced in the private sector.
Education: The government announced the removal of VAT on educational and vocational training, including long distance learning. It also announced that the one-tablet-per-child scheme to be introduced at middle schools
Environment: A Bottle-return scheme is expected to start by the end of this year. The government also announced that the sale of single-use plastics to be banned by January 2021.
Transport: Government announced that there will be cheaper electricity for electric car owners. Meanwhile there will be more port ferry services connecting the several harbours on the easter coast. Another measure will see people over 75 years of age can use public transport for free
Money Laundering: Cash payments over €10,000 will be not allowed for purchases of cars, boats, property and jewellery.
Other Media Reports:
Budget 2020 at-a-glance: What’s in it for you? – The Times ;
Budget 2020: What’s in it for you – the list of measures at a glance The Malta Independent
Budget 2020 at a glance – MaltaToday
The Newspaper FrontPages
Full Review can be accessed here.
Newsbook presents who will be getting what from a government departments and ministries perspective.
The following concise & insightful interpretation of the 2020 Budget from the ARQ economist’s team of financial, tax and economic specialists, gives you a 360 degree view of the salient features that will affect business in the year ahead.
Commentary / Analysis / Reactions
Is this Joseph Muscat’s last budget?
Prime Minister Joseph Muscat said ‘no’ on Monday when asked whether the 2020 Budget was his last as prime minister.
Dr Muscat fielded questions at the Auberge de Castille after Finance Minister Edward Scicluna delivered his three-and-a-half hour speech in Parliament.
“If you think this year we were generous because it was the last one, wait till you see next year,” Dr Muscat said. The Times
Reactions:
The Budget does nothing to solve the problems which the government itself has created, the Nationalist Party said on Monday. This is the Budget of a government which lacks a plan, lacks ideas, and lacks solutions, Opposition leader Adrian Delia told a press conference. What the people had been presented with were recycled ideas which had not been implemented over the past few years, he said. Times of Malta / MaltaToday
Forum Union Maltin described the budget as ‘limited’ and skirts the challenges which the For.Um says are still pending. It complained that the budget does not address the lack of educators, nurses and social workers as well as the implementation of a work life balance.
Union of professional Educators said that while the surplus is praiseworthy, it feels “…that one of the greatest challenges currently facing our country, is that of a shortage of Educators practicing within the educational system. Thus we feel, that it would have been wiser that the government done more to address this issue.”
This budget was too limited in the educational sector and instead initiatives which have been mentioned in several other instances, were trotted out again” said the initial reaction of the MUT. It warned that the problems in the sector, untreated as they are, will aggravate.
The MEA said that thenational budget presented for 2020 is a reflection of a strong macro-economic stability, resulting from a budget surplus over the past few years, falling public debt which is expected to reach 40% of GDP in 2020, unemployment which stands at 3.5%, relatively low inflation and a robust economic growth. “Another situation that needs to be addressed is the reputational damage Malta is suffering from due to the bad publicity caused by numerous scandals. Our current level of economic performance is heavily dependent on our reputation as a safe investment destination that will sustain sensitive sectors such as financial services and igaming.
The Malta Developers Association (MDA) said that it was highly satisfied that its proposals for the Budget have been adopted by the government. MDA said it was pleased to note that the time limits of tax incentive schemes introduced in previous budgets were extended. These include the first-time and second-time buyer schemes; the incentives for those who buy property in Gozo and in village cores; and the incentives for parents who donate their business to their children.
Malta Hotels and Restaurants Association, MHRA said that Budget 2020 keeps building on the economic principles established over the past recent years. MHRA commended what it described as Government’s concrete initiatives to further refine and embellish the tourism product and further spread amongst the many the benefits generated from this important economic sector.
In its preliminary reaction to the Budget speech, the Malta Chamber noted that the Budget for 2020 was set against a backdrop of an economy that is performing well. The Chamber noted that its calls for Government not to introduce any surprise measures and new taxes were largely heeded. At the same time, in the light of Malta’s recent slippage in the World Economic Forum’s Global Competitiveness Index by two places, the Chamber expected more investment in resources to strengthen the shortcomings exposed, namely the soundness of institutions, skills, market structure and financial systems.
UHM described the budget as one which was afraid to take on the challenge of transport, the challenge of foreign workers and the challenge of catering for future pensions. The union said that it expected government to treat these issues seriously.UHM on the other hand applauded the decrease in taxation for pensioners as well as the substantial COLA increase.
The GWU expressed the opinion that the wealth and economic stability which has been in place over the past seven years has led government to accede to its proposal for equal pay for equal work particularly among the sub-contractors to government work. This, said the Union, is a victory and it must now be extended to the private sector. The GWU expressed itself optimistic that the ultimate goal of equal work and equal pay will be finally reached. Newsbook
Controversial element
MaltaToday reports that what was promised in the Labour Party manifesto now has got it a timeline – a public consultation will open next year on the Pjazza Teatru Rjal. Valletta’s open-air theatre was born in controversy after the last Nationalist Party administration embarked on plans to build a new parliament instead of reconstructing the bombed opera house. The government will open a public consultation next year to determine whether works should be done on the place to adapt it to the cultural calendar. “We are excluding nothing at this stage and we welcome any proposal to give value to this place with respect to our heritage, including roofing over the theatre,” Scicluna said in his budget speech.
CiConsulta – BeInformed Media Monitoring Service
