Government to issue pre-Budget document

Prime Minister Lawrence Gonzi is this morning expected to unveil a document mapping out the government's plans and priorities for the next five years - and giving a taster of the much-anticipated Budget.

The pre-budget document is the first of its kind and marks a major change in the way the government consults with the social partners in preparation for the budget.

It should ensure that future budgets are not awaited with the usual trepidation and that there will be no major surprises when the Finance Minister eventually announces the plans.

It is far cry indeed from the time when the Budget used to be a tightly held secret until the minister's speech in Parliament.

The document was drawn up by a core group led by the Parliamentary Secretary in the Finance Ministry, Tonio Fenech, with the involvement of various committees and working groups.

Sources close to the government said the document, based on the British pre-Budget model, was approved by Cabinet and is expected to serve as a basis for discussion in the coming weeks.

Among the major policy points probed, the document looks into ways of making the country's taxation system more effective and attractive. The government is also likely to propose a change to the student stipends system, the sources said.

The document will give a snapshot of the economy and is expected to provide a series of incentives to spur the private sector to be the engine of the economy.

The government is expected to give the social partners until the end of August to give their reaction to the document. As is customary, they will be asked to submit their requests and priorities for possible inclusion in the Budget.