Detailed budget talks due next week

Constituted bodies represented on the Malta Council for Economic and Social Development are expected to have a whole-day meeting with Finance Minister John Dalli on Thursday during which they will hand over their proposals for the budget, informed sources said yesterday.

"The trade unions and employers' organisations will be putting forward their ideas and the government will try to reconcile the proposals with its plans as much as possible," the sources said.

The budget is expected to be presented late next month.

In terms of the retail price index mechanism, the budget is expected to include a weekly wage rise of Lm1.75 for next year to cover the rise in the cost of living.

The increase is calculated on the basis of the cost of living over the year. The cost of living increase for this year was Lm1.50.

Next week's meeting is also expected to discuss a pre-budget consultation document presented to the constituted bodies by Mr Dalli some weeks ago.

The document focused on the medium-term economic scenario, public finance and structural reform objectives.