'An economic stimulus'

The cost-of-living adjustment and the one-time compensation to families for the planned increase in energy tariffs should dampen the impact of increasing expenses, the Union Ħaddiema Magħqudin said.

In an initial reaction to yesterday's Budget, the union described it as one of "support, solidarity and economic stimulus," adding that it upheld principles shared by the union.

In the debate leading up to the Budget, the UĦM had called on government to pay the full cost-of-living allowance, calculated at €5.82 weekly, to workers and pensioners.

The union was glad to see this proposal was implemented, together with other measures aimed at mitigating the cost-of-living increase.

The union expected more commitment towards curbing abuses in social benefits and tax evasion.

Among its Budget proposals the union had also called on government to trim the top income tax band from 35 to 25 per cent, saying it would curb tax evasion and eventually result in more revenue for the country.

But lowering the highest tax band - a pre-electoral promise - has already been ruled out by Finance Minister Tonio Fenech in September.

The union yesterday praised measures boosting employment, protecting consumers and simulating the economy.

The setting up of the Maltese Fair Trade Authority would better educate and protect the consumer.

The union hoped that controlling the cost of medicine and the prices at the fruit and vegetable market, or Pitkali, would also help control the increased cost of living.

In the initially positive reaction the union also expressed its support towards other measures that increased the funds for promoting Malta as a tourist destination, further investment in education, assistance to industry, the allocation of funds for research and innovation and widening the scope of Malta Enterprise through more funding.

The UĦM also welcomed the fact that, despite the current economic situation, the government did not lose sight of Vision 2015.

The union said it will be analysing the Budget in greater detail during a general council tomorrow.