Updated - Government unveils fiscal consolidation strategy, no word on tax cuts
The government has unveiled a strategy for fiscal consolidation next year, based on curbing expenditure.
The strategy forms part of the pre-Budget document presented today by Finance Minister Tonio Fenech.
It is an update to the short and medium-term fiscal framework within the Stability Programme presented to the EU in April.
"The government’s objective in designing an appropriate fiscal consolidation strategy
is to strike the right balance between expenditure-reducing and revenue-increasing
measures. Expenditure cuts are more effective in a medium-term perspective than
revenue increases, particularly in view of the Government’s macroeconomic objective of improving national competitiveness levels," the document says.
"Furthermore, fiscal consolidation measures which cut Government expenditure tend to have fewer distortions on the workings of the economy. In line with these general principles, the Government’s fiscal consolidation strategy for 2012 is largely expenditure-based."
DEFICIT TO DROP TO 2.2%
During the next fiscal year, the general government deficit is projected to decline by
0.6 percent of GDP from 2.8% at the end of this year to 2.2%.
This will come about mostly from a decline in the expenditure-to-GDP ratio
rather than revenue-increasing measures. The ratio of total revenue to GDP is
expected to decline by 0.3 percentage points of GDP from 40.2% in 2011
to 39.9% in 2012, whereas the expenditure-to-GDP ratio is expected to decline by 0.9 percentage points of GDP to 42.1% in 2012.
Increases in the main items of tax revenue are expected to keep pace with the projected economic growth, such that the ratios of taxes on production and imports and of current taxes on income and wealth as a percentage of GDP are expected to remain relatively stable.
Marginal changes are expected in the ratios of social contributions and property income to GDP.
However, the document says, the government stands ready to act if preliminary indications suggest that revenue from taxes on production and imports in 2012 falls short of the parameters set by the historical relationship between this item of revenue and consumers’ expenditure growth.
"Meanwhile, the Government will also be actively monitoring projected developments in 2012 of direct tax revenue on the basis of the observed responsiveness of current taxes on income and wealth to economic growth.
On the expenditure side, the government will be pursuing its expenditure-based fiscal
consolidation programme by intensifying its efforts towards improved efficiency in
public spending.
Civil service recruitment will continue to be restricted but better conditions
for public sector employees are envisaged within the new collective agreement being
negotiated with trade unions.
Furthermore, to entrench further fiscal discipline within line ministries, efforts will be sustained to stick to the rigours of a revamped procedure which ties Ministries’ expenditure allocations closer to the quality of their respective plans for future years generates.
'IMPRESSIVE' EXPORT GROWTH
Mr Fenech said the Budget was being drawn up against the background of an uncertain international economic scenario, but the Maltese economy had continued to grow steadily. It grew by 3.7% last year and by 2.3% in the first quarter of this year, with the growth spread over different sectors.
The government, he noted, had taken several measures to sustain economic growth. Over the past three years Malta Enterprise approved 99 investments, including 51 new factories and 48 expansions.
The Microcredit and Microinvest schemes, launched at the last Budget, had been taken up by 67 businesses for the former and more than 600 for the latter.
Exports in the first five months of this year grew by 49%, which was 'impressive' the minister said.
"We have the fifth lowest unemployment rate in the EU at 6.2%, Spain has the highest with over 20%," the minister said.
One of the challenges of the Budget, he said, was to raise the participation of women in the labour market.
TAX CUTS
Asked about tax cuts promised at the election, the minister said the governemnt, as from the first Budget, changed the income tax bands, and came up with schemes in the light of the international financial crisis. The governemnt could not bring about income tax cuts because it needed the money to keep companies afloat.
He said one would have to 'wait and see' whether the government could give further tax cuts in the next Budget or the one after.
AIR MALTA
He said the situation at Air Malta could have an impact on the Budget this year or, most probably, next year, since the decision by the European Commission on the restructuring programme would come about Christmas time. The talks on the retirement schemes were in progress with the trade unions, and these too had to be cleared by the Commission.
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Mr Kevin J Vella
Aug 3rd 2011, 15:45
@Tony Camilleri
I do not need to ask anyone about the Mintoff era considering I lived it first hand and remember the 'riches' we had then. Where was the economic prosperity then? You mentioned rationing was a PN problem. As far as I know it carried on well into the mid 70s - sugar, oil and so on. Stability of prices by the bulk buying meant inferior quality of produce. Did you eat and drink in the same manner you eat and drink now? Isn't that consumer prosperity? Or eating sub standard food is your idea of success? Or was it the colour televisions that obfuscated your judgement? Do you think that corruption exists only under the PN? Well, I refer you not to Mintoff because I am not sue he was corrupt BUT I urge you to remember Lorry Sant and all the thugs. Where you beaten by the police under the PN administration? Oh wait. That doesn't fall under stability. The shipbuilding industry was ruined by no-one except the Asians and Mintoff refused to shut it down but brought the Chinese instead - or did you forget the Red CHina Dock? Nationalised industries are inefficient and produce inferior quality at higher prices. They are NON-competitive - examples, ship building, airmalta, enemalta and a host of other organisations. Don't believe what the politicians tell you blindly! They are all masking inefficiencies. Don't you think that it is in the interest of all governments of malta to protect their nationalised industries despite the losses. They are protecting employment and by employment they are protecting votes. Even Communist China are embracing capitalism. The communist model has failed and buckled.
As to the level of employment in the 1970-1980s don't you remember 25,000 people unemployed? Immigrant taking maltese jobs - who is employing these sub-par? Also didn't we have an immigrant problem during Mintoff's time - I tell you I remember a host of Libyans using the Gzira public gardens as their public convenience. And not to mention other Eastern Europeans and so on. Aren't people better off now? The times just reported 3000 private vehicles reported in 3 months - that's over 30 cars a day!!!!!!!! When under the labour government did that happen. Lots of people grumble but all I see is people demolishing and building, cars (and expensive ones running around). I am not saying that there isn't a stratum which isn't suffering. But that stratum will always exist whether it is a Labour government a nationalist one or a green one. Don't think that JM will reduce electricity prices. No way - his choice is Hobson's to retain the status quo so as not to cut Enemalta workforce .... don't expect miracles because MLP has none just as much as PN have
j brincat
Aug 2nd 2011, 13:01
@Joseph Briffa
Quote:'Now the tax cuts mentioned at election time would have only benefited the high income earners - anybody earning >Eur35 000 which incidentally includes ministers and most'
With all due respect you keep beating about the bush. Was the promise to cut tax made?. Yes or No? It would have effected the quite high income bracket. So what?. This promise was obviously meant to get their vote and those who believed the PM were tricked. Punto e basta!
(jb)
Mr pacifico galea
Aug 2nd 2011, 09:51
Jien ma nafx ghax certa affarijiet li kienu jezistu ilum maghdomx jien persona ninsab imnigess u nghidilkom biex sa fejn niftakar il gvern kien qal li childrens allowance kienu se jigu moghtija in full lil dawk li ma jaqbzux id dhul ta 10,000 lira Maltin jien bilkem naqbez l 10,000 euro u ma niehux il full. issa nigi ghal xi haga ohra il mara tieghi qabdita marda kiefra li gabita habdikap u aplikajt ghal tal mard u ir risposta tafu xkienet mintix intitolat ghax tahdem. U dejjem jaghjat li dawn it tip ta nies irridhumo ikunu flistess livel bhal hadd iehor. Nitama li dan li qed nikteb jinqara min nies u ma jaqax fuq widejn torox. Biex taraw dan il gvern fiex gabna u jekk jibqa hemm holu xarkom u gibu iz zejt jghid il malti ghax il kbir ghadu gej
Joseph Grech Attard
Aug 2nd 2011, 09:34
Isn't this what all the nations, which are now in a deep gutter, said just before they declared near bankruptcy? Like Portugal, Ireland, Spain, Greece, etc as well as the infamous Mr. Berlusconi?
Mr joseph saliba
Aug 2nd 2011, 09:28
I'm no economist but john citizen says promise or no promise tax-cuts will lead to disaster. What about a one-off tax rise of lets say 5% from a certain income distributing it to people at risk?
j brincat
Aug 2nd 2011, 09:06
@Joseph Briffa
Quote:'Promises need not always be kept if they do harm to the economy'
Why did Dr Gonzi make them (and remember we were boasting of Finanzi fis-sod and tax cuts had to come in the FIRST budget) if they were going to harm the economy?
Or were they made to lure the middle class and trick them to vote the PN?
(JB)
Mr Joseph E Briffa
Aug 2nd 2011, 10:48
@ j brincat...since you are again at it I will answer your question. As everyone knows, people on the whole don't like paying taxes, but they love tax cuts, the higher income earners in particular. Politicians also hate making people pay more taxes, and would rather give tax cuts and make themselves more popular. Now the tax cuts mentioned at election time would have only benefited the high income earners - anybody earning >Eur35 000 which incidentally includes ministers and most MPs. So had this measure been introduce these people would have benefited as well. The fact that this measure has been shelved therefore has affected ministers and MPs adversely. It has therefore resulted in an exercise of self-discipline. The reduction of the higher income tax band to 25% would not have had any effect on average wage earners (some Eur16 000) and obviously the lower income earners (Eur8 000 - min wage up to Eur16 000) would not have benefited at all. That's why I pointed out that it is odd to say the least that Labour is clamouring for the introduction of this measure. Socialists usually favour the introduction of more taxes.
Alistair Farrugia
Aug 3rd 2011, 12:54
Joseph Briffa: I might be confused here, but where are you getting the 35,000€ figure from? IRD website clearly states that a 35% tax rate applies for those earning more than 19,000€. If the maximum rate becomes 25%, then it won't only be the "high income earners" to benefit, but a good portion of middle-class families that are in a situation whereby your pay is the only thing that can keep your family afloat. The middle-class gets no or very limited benefits whilst there is not enough disposable income to live in luxury. This is a reality. Having a gross salary of €20,000 and a family of 3 / 4 to raise is very hard, and a tax cut would be very welcome indeed. It's not just the high earners that would benefit, so don't misinform the people unless you can prove me wrong.
This cut was promised, right? No need to hold referendums on this issue...
Mr A. Mizzi
Aug 2nd 2011, 07:35
Government unveils fiscal consolidation strategy, no word on tax cuts...yet! Wait till next year when the election date looms!
Will theGONZIPN be curbing expenditure next year with the Election on the doorstep.... keeping the best for last as pre-electoral freebees?
Francis Attard
Aug 2nd 2011, 06:55
Jista l-ministru jghidilna kemm hawn haddiema qieghdin jithalsu ta' l-overtime bil-'flat-rate' li hi kontra l-ligi?
Francis Attard
Aug 2nd 2011, 06:50
Jista il-ministru jghidilna kemm hawn nies qed jithaddmu bil-Minimum Wage?
Mr pacifico galea
Aug 1st 2011, 23:45
Jien ma nafx ghax certa affarijiet li kienu jezistu ilum maghdomx jien persona ninsab imnigess u nghidilkom biex sa fejn niftakar il gvern kien qal li childrens allowance kienu se jigu moghtija in full lil dawk li ma jaqbzux id dhul ta 10,000 lira Maltin jien bilkem naqbez l 10,000 euro u ma niehux il full. issa nigi ghal xi haga ohra il mara tieghi qabdita marda kiefra li gabita habdikap u aplikajt ghal tal mard u ir risposta tafu xkienet mintix intitolat ghax tahdem. U dejjem jaghjat li dawn it tip ta nies irridhumo ikunu flistess livel bhal hadd iehor. Nitama li dan li qed nikteb jinqara min nies u ma jaqax fuq widejn torox. Biex taraw dan il gvern fiex gabna u jekk jibqa hemm holu xarkom u gibu iz zejt jghid il malti ghax il kbir ghadu gej
J Borg
Aug 1st 2011, 23:14
DEAR ALL,
These figures are INCORRECT... government works on a cash basis.
This means that if it does not pay a creditor it is not an expense and therefore not part of this year's deficit.
If a private company buys a service but does not pay for it still accrues for it ie part of that period costs.
For clarity government does not operate observing international accounting standards.
Can all citizens WAKE UP... you are being taken for a ride... the situation is this rosy.
K. Vella
Aug 1st 2011, 21:47
just imagine having joseph muscat as prime minister! Promising everything and not recognising the global economical turmoil we are in. Well done to the goverment, mistakes do happen and are done but wise decisions are done and results are being achieved.
David Pisani
Aug 1st 2011, 21:40
Mr John Zammit Spiteri just remember that there are 17% of people living in risk of poverty. Infact an energy compensation is given to these families. Many workers are also working in precarious jobs, means no regular jobs. These people are finding it difficult to have a bank loan.
On the other hand people wth a higher middle wage income and others with more income, are living a comfortably life.
To note is that the gap in Malta between high and low income is widening, and even the number of people living in risk of poverty is increasing in Malta and Europe. So please give a little respect to these people, who exists.
Peter Seebohm
Aug 1st 2011, 20:58
John
well said :-)
MALTA goes to ground with 15% taxes, etc. ????
Imagine GERMANY: they pay average 42% on taxes, social security, etc
BUT if they have to go to a doctor they have to pay an additional fee plus additonal fees on drugs.
Much better it is: if they are low earners they get the money from the community, BUT in return they have to accept jobs which give them 1 Euro per hour !!!!!!!!!!!
John Zammit-Spiteri
Aug 1st 2011, 20:17
when one reads certain comments , one expects to be living in poor african states. It is amazing to say that we are going to have an austerity budget when we are still eating out, shops are not closing, when political parties organise full day donation campaigns they do quite well, feasts are still being organised, we are driving more nice and modern cars, we are well dressed , plus we still hang out till the early hours of the day in bars and discos, I wonder why people are picturing Malta as a place where doom and gloom lie over our islands!
We are constantly complaining about our gaining of weight. I think it would do us good to start tightening our belts. We are having it too good.
The Government has managed to keep going at a very small pace without rocking the boat. I agree that there is a lot of waste around but I think that we did quite well and we are living quite well,
And oh I forgot everyone has a flat screen colour tv in every bedroom plus we now boast of having smart phones if not two or three to avoid getting caught by our fiancees or wives or boyfriends or what ever is the case. The truth is we are living in luxury and we are living with our eyes "WIDE SHUT"
We need a bit of hunger to know what hunger and misery really means.
M. Bezzina
Aug 1st 2011, 20:56
People like you really amazes me eh......my goodness unbelievable....ask those families that earn 600Euros monthly and they can describe their life much better than you...Probably you have quite a good income to speak like that!!!
Mr mario gellel
Aug 1st 2011, 22:05
TRY LIVING AND FEEDING A FAMILY OF 4,4 AND I MEAN 4 ON A 3.70eros PER HOUR , LOL ?????
Mr Tony Gatt
Aug 1st 2011, 23:39
I suppose the fact that Malta gets back twice the amount of money it contributes to the EU must help a bit in living the 'High Life'!
Mr Andrew Grech
Aug 2nd 2011, 08:13
Dear Mr. Zammit-Spiteri,
don't you think that your comment is insensitive to those who right now are passing through a rough time trying to make ends meet?!
I know of families who sacrifice their lives for their children, working hard, sometimes having to work two jobs each in order to meet family needs or to cut their house loan.
Maybe you form part of a different social class, or maybe you were lucky enough to get a well paid job, and i say lucky because in Malta that amounts to alot.
Going out and having a beverage with the family doesn't mean one is a rich person, it just means that they are keeping the family bond alive and trying to have a good time, which sometimes these days is hard to do. Or should workers and their families not have the right to a bit of fun?
Your comment is partially true though, some people earn more than the average wage and therefore may permit themselves alot more luxuries, whilst others do enjoy these but end up in the red.
But rest assured that there are people in this country who know what misery really is.
regards,
Andrew
Mr R ferriggi
Aug 2nd 2011, 09:19
i am not a doom and gloom person.
but dont you think you are giving or living too nice a picture of the situation??
is the picture you painted,,, the reality of all families??
and dont you think your last paragraph is TOTALLY out of subject??
the argument is: we agree that we are not dying of hunger, we agree everyone wishes to imporve his status and standard of living. we agree we do not want to bankrupt the country.
the problem is: WHY did the government make promises and broke them?? while on the other hand, had no problem to conveniently go ahead with the massive wage rises for him and his own??
this is what irks the people. two weights, two measures. preach and then do the opposite.
Mr Tony Camilleri
Aug 2nd 2011, 10:21
Mr Tony Gatt we are and have always been net contributors to the eu.
Mr Tony Camilleri
Aug 2nd 2011, 10:23
John Zammit-Spiteri are you one of those mentioned especially in your last paragraph?
Carmel Cilia
Aug 3rd 2011, 10:47
@John Zammit you should know who introduce these line of thoughts and who said publicly years ago that money is no problem. You must know who said that the debt we make over the years would be paid by later generations.( I would like in this case to know whether this late gentleman left debts for his posterity).
In one word it was this government over nearly a quarter of a century who introduced this kind of living amongst the present Maltese. Not so long ago our fathers used to advice us that if we earn a pound we should spend one shilling and save nineteen for later use.
All caution has been thrown to the wind and now our tiny country and young and future generations have to live with billions upon billions of euros in debt. Yes we spend more onthe payment of interest then we spend on our education. Who is to blame Ha Ha the Labour party. Leave us alone mr. Zammit.
Mr Peter Korsten
Aug 1st 2011, 19:18
I'd rather pay a bit more tax now, than to not have old-age benefits, or my son having to work himself to death in order to finance our little tax deduction today.
How long have we had a deficit now? The Europact rules state that three years are the maximum. 2.2% is still a deficit.
And still the government has made no commitment to do anything about wastage. I want to see a promise that this Gozo tunnel (I don't mind a bridge or a causeway, but a tunnel is the most expensive option) is off the maps, as are any other mega-projects, until we're solidly in the black, and until there is a sizeable dent in the debt.
Until that time, the government should be as carefully with our money as we have to be.
Mr Joe Cardona
Aug 1st 2011, 19:05
There is only one word for the MInister and his government.
RESIGN AND MAKE WAY
Do you think that the people are still believing what you are telling. Come on. Be sensitive and make way.
Mr M Borg
Aug 1st 2011, 19:43
You must be living elsewhere and not in Malta to say that you do not believe.
Did Tonio Fenech say that he is going to cut pensions ? Did he say that he is going to cut social services ? Did he say that he is going to stop chilider's allowance ?
This is what other Goverments are doing. Here in little Malta we can say that the Government and the economy is strong enough with the goverment even trying to drop the to 2.2 % by the end of next year.
Mr Lawrence Camilleri
Aug 1st 2011, 19:49
We are in the frying pan, let's jump into the fire Mr Cordina.
Mr Lawrence Fenech
Aug 1st 2011, 20:30
Hoss fl'ilma.
Mr Angus Black
Aug 1st 2011, 20:32
This sounds like an echo from one of Joseph's broken records.
I am pretty sure that this government would be willing to resign the moment Joseph comes up with any idea at all to fix all the problems especially those which unexpectedly came about after the collapse of the world economy. Ideas which make sense, that is.
What would you prefer, a government which throws good money away at bad money losing entities and end up like Greece, Ireland, Portugal or unfortunate Iceland which chose to follow Joseph's advice and not join the EU?
Good for the Maltese citizens who, against Sant and Muscat's advice whent ahead not only to join the EU but also the eurozone. Where would Muscat find a billion euro to rebuild the infrastructure? How would he have paid for fuel for our power stations at the new high oil prices and at the same time reduce your electricity bills? Maybe he would have given you the privilege of switching on for two hours a day?
It is Joseph who should call it a day and stop being the island's clown. The government has had a string of remarkable successes, staying out of harms way, creating jobs and having the fifth best unemployment rate in the EU.
When was it last (ever?) that Labour could boast of similar success?
C Scerri
Aug 1st 2011, 20:50
Where the hell are you living?
Without mentioning cars, mobile phones, travel abroad and property prices, take a look at restaurants (for most of the time very busy and with Maltese) or try and get a technician or any other labourer at home for works - you have to wait 2-4 months if not a year in certain cases. Have you been to the beer festival last week - full to the brim with people eating and drinking, or to the latest major concerts with 100 - 200 Euros tickets - again full with hardly any empty seats.
Come on, if you really want to see problems go to Spain, Greece, US, Ireland even UK - then compare here. We would always like to be better, but I can assure you, we are quite well off compared to the rest of the world - remember the story of the dog that looked into a well and saw another dog with what looked a bigger bone in his mouth - and the fool tried to get hold of the bigger bone!!!
Ms Rita Smith
Aug 2nd 2011, 00:19
Mr Cardona are you living in cukoo land. Yes we have around us all we want. Yes I consider ourselves rich compared to other countries. Nothing comes fee. We must pay taxes otherwise how can a country move forward. You must be seeing everything bad. Nothing is perfect in this world but believe me we are taking this shower of goodness for granted and maybe one day when this goodness is no more thenour eyes will be open a little bit too late. Let us thank the Amighty for showering with such abundance.
Rita Smith
Mr Denis Pace
Aug 2nd 2011, 07:00
apart from your agenda, why should we believe what YOU are saying, let alone agree.? Everyoneat is happening all over the world.
Mr Tony Camilleri
Aug 2nd 2011, 10:26
Mr M Borg he has been doing it since the PN came to power by not giving enough COLA to compensate for the cost of living increase.
Pensioners during Labour Governments were rich people who could afford to give presents to their grandchildren, but now they have not only to try to make ends meet but many times they have to ask their children to help them financially.
That is the situation which various PN governments have brought the pensioners to apart from the hardships on other people.
Mr Tony Camilleri
Aug 2nd 2011, 10:29
Mr Angus Black weren't the people told that the crap eu isheaven on earth and that our roads will be paved with gold if we became members?
Instead we have been net contributors since the very beginning when everything is considered including the expenses that we have to make to implement eu laws and what we have lost because of eu membership.
E. Azzopardi
Aug 1st 2011, 18:51
Obviously, there will not be any tax cuts as we have to give retirement schemes to Air Malta employees and so on and so forth. As if we have not given enough in the past. Sorry, but I have worked all my life with private companies and never got a cent in compensation when I needed it. Now I am expecting to have my taxes lowered, as promised after all.
A Dimech
Aug 1st 2011, 18:48
Before the Election Gonzi promised crystal clear that he would cut income tax. Please keep your promise!! and no excuses. You knew of the financial crises, so you shouldn't have promised.
Ms Rita Smith
Aug 2nd 2011, 00:23
Come on have you never made a promise and unfotunately you could not keep it under that circumstance. Be grateful for what you have now because masybe in a few years time you will not find this abundance.
Rita Smith
Joseph Goerge Borg
Aug 1st 2011, 18:33
I remember such bla bla in 1971 before the elections we were promised heaven on earth, after the elections? We had to whisper to each otherwise we were told that if we talk normally the really bad economic wall will crumble on us. So started, belt tightening, corps, haddiema tas-sajf jahdmu fix-xitwa etc. etc. an my labour believes vanished in thin air then came back to me in 1996 and...
Mr Joe Cardona
Aug 1st 2011, 19:34
Sur Borg
Nahseb li kont qed tghix fil-qamar dak iz-zmien. Vera li kienu ilhom xi snin li niezlu fuqu. Mela insejt il-Gvern ta' Gonzi u siehbu li kien imexxih qabel kemm bieh kumpaniji u korporazzjonijiet li qajjmhom fuq saqajh il-Gvern Laburista. Fittex ftit u ara kemm dahhal miljuni il-gvern tal-PN minnhom.
U tinsiex ukoll kemm kecca u se jkecci mill-haddiema li kienu jahdmu maghhom. Nahseb li l-istorja taqra bil-maqlub.
Mr Tommy Vella
Aug 2nd 2011, 04:30
@Mr Joe Cardonba
Jaqaw qed tirreferi għad-Drydocks, ix-Shipbuilding u l-Kalaxlokk?
Jew għal Dirgħajn il-Maltin, il-Pijunieri, Iżra' u Rabbi, Baħħar u Sewwi?
Michael Magri
Aug 1st 2011, 17:56
"..The government has unveiled a strategy for fiscal consolidation next year, based on curbing expenditure.." Exactly Mr. Prime Minister.. Donnok li f`daqqa wahda Skoprejt l-Amerika ta...!!!!!!!!!!!!!!!!!!!!!
This is what the Labour Party and Dr. Joseph Muscat have been saying and Telling you, ALL ALONG..
We must not only `Curb`, and Sereously cut down on our hubhazard spending spree, which has been going on `blindfoldedly` for the last 20 years or so, of PN Governments, ( so that, "..id-Dejn ihalsuh Uliedna u Wlied Uliedna." ), but also that which Dr. Muscat splendedly described it as the new and never ending `Corruption Tax`..
You don`t have to be some financial wizard to come up with such a simple solution, as We all know very well now how, Without Fail, EACH and EVERY government`s construction project ended up costing almost 85% to even more than100% it`s original estimate without fail.. Like, for example... Mater `Dejn`, Cirkewwa and Mgarr Gozo Terminals, All Roads, Bridges, Buildings, etc.. etc.., and the famous Air Malta`s Investments in Azzurra Air and the RJ Aircrafts, and You Name It.. It`s there...!!!
Thanks Dr. Muscat.. Time is proving you right always...
Mr Kevin J Vella
Aug 1st 2011, 18:45
Dear Mr Magri
It shows that neither you nor your precious labour party appreciates the importance of government spending towards pushing forward economic prosperity. May I urge you and your leader to have a look at basic macro-economic text books in this regard! The economic spending is need to foster an ambience of safe investment which your darling labour party has absolutely no knowledge of given its history between the 70s and the 80s.
"Like, for example... Mater `Dejn`, Cirkewwa and Mgarr Gozo Terminals, All Roads, Bridges, Buildings, etc.. etc.., and the famous Air Malta`s Investments in Azzurra Air and the RJ Aircrafts, and You Name It.. It`s there...!!!"
What about the labour fiascos of bulk buying, rationing, nationalisation, inefficiencies of the ship building, "dirghajn il-Maltin" and other communist and Marxist concepts for the proletarianisation of the island?
FYI Communism and the like has failed. Even China has embraced Capitalism.
Having said that, it takes no economic nobel laureate to state that excessive spend is equally damaging. Dr Muscat is stating the obvious - but you take it as a gospel. It is blind people on both sides of the political poles that has created a political bottleneck in Malta - or simply put, because of excessive polarisation no other political party aside from PN or MLP (aka a duopoly in economic terms or monopoly shared by two) can ever be given a chance to reign and usher in a completely different mentality for the majority of the maltese who are sick of both GonziPN and MuscatMLP.
Our beloved island is plagued by red and blue leeches..people in power and people aspiring for a piece of the action...come on - let's get real
brian spiteri
Aug 1st 2011, 19:38
@ Kevin J Galea
Fejn hi din l- economic prosperity li qed issemmi? Mur staqsi lin nies u jghidulek kemm sejrin tajbin!! Ghamel ftit ricerka fuq l- internet u malajr issib li il pagi f'Malta huma l- iktar baxxi u il- prezzijiet l-ghola!! jien barra minn Malta nahdem, qed nghamel l-stess xoghol professjonali li kont qed nghamel malta u fil but jibqali hafna it-tripplu li kien jibqali meta kont Malta meta naqta l-spejjez!! Jeww qatt ma hrigt minn Malta, inkella ghandek xi job komdu ghall blue eyed boys!!
Mr Kevin J Vella
Aug 1st 2011, 20:54
Mr Spiteri
It's Vella not Galea - which is an indication that you didn't even to read my post properly
Read my post properly and you will see that I made four points:
1) it does't take an economic genius or a political leader of any shape or sort to tell us that there are economic problems.
2) government spending is a requirement if you want your economy to grow. This is an economic fact. Cut spending drastically and you will get less investment by the private sector, a fall in private consumption, falls in taxes and so on.
Political leaders elude the people when they say they are going to "curb" spending. Labour didn't spend a penny and this was shown in their 1970-1980 track record. If you don't remember that time I suggest you ask people who do. And I urge you to talk to them about wage freezes while you're on the subject.
3) excessive spending is equally problematic, i.e., it causes problems as not spending. Over spend and splurge and you get an overheated economy which will burst as it is unsustainable - a state happening around 2001-2011 in Malta - and the fall is still to come. So do not expect MLP miracles, If you do you are blinded by the propaganda machine. Labour cannot bring prosperity without a proper economic policy - and I have seen neither hide nor hair of one. In fact JM wants to reveal all towards the eve of the election - which means I have many false promises in store for you peeps to vote me in! (We will hear the PN in their full glory mind you)
4) Which leads me to my fourth point - we need a change from MLP AND PN! So there are no blue-eyed boy jobs here. That is not even an issue - it's simply an obtuse comment made by an offended labourite. I am saying that I don't want the PN or the MLP because excessive polarisation has caused a massive problem for Malta to move forward. No more false promises but a real way out of this mess that addresses several issues like you rightly mention - high and rising costs against low pays - mind you our (net) pays are equal to Ireland, Italy and higher than Wales, just to cite three examples of European countries. What is significantly cheaper overseas is furniture, food and clothing. The environment and EU compliance on energy laws are two other examples. All the main political parties say is merely a smoke screen to mask an inexistent knowledge of how to get us out of a rut!
As to living overseas or never having been abroad, don't make assumptions about me since you don't even know who I am or what I do, so I won't deign you with a response on that.
I suggest you read properly first before throwing stones
Ms Rita Smith
Aug 2nd 2011, 00:26
Mr Brian Sspiteri ma nafx xi proffessionist int. Imma hawn il-proffessjonisti kollha mfawrin bil-flus. Mur dawra maghhom u tkun taf.
Rita Smith
Mr Tony Camilleri
Aug 2nd 2011, 10:48
Mr Kevin J Vella
Prosperity? Tell it to those who are unemployed or only working part-time at miserly wages because if they complain their employer tells them that either they accept or he will employ foreign workers and illegal immigrants.
Labour removed rationing because it was still operative under PN.
Bulk buying a fiasco? We had stable prices.
Nationalization? What is wrong with the government owning companies and banks that contribute their profits to the nation's coffer to be spent back on the citizens?
Inefficiencies in shipbuilding? You have never worked in shipbuilding because otherwise you will not be writing what you wrote. It was the INCOMPETENT PN governments that were responsible for the mishandling of the Russian Ships contract. If Shipbuilding was inefficient, why did the PN Government give Shipbuilding the contract for the three Gozo Channel ships which everyone who goes to Gozo or comes to Malta uses and enjoys?
Absolutely no knowledge of economics by PL Governments in the 70's and 80's? Ask the people whether they were better off under PL Governments and whether they are better off now under PN Governments. Don't include friends and friends of friends who when collection time comes contribute so that someone would be able to pull out Lm10,000 from one pocket, Lm20,000 from another pocket, etc all collected from coffee mornings. As if!!!!!
Ms Rita Smith u l-ħaddiema l-oħra?
Ara per eżampju, GONEZI u sħabu qed jieħdu ZEWĠ SALARJI ŻEWĠ COLA.
Hawn xi ħadd jieħu żewġ salarji ta' xogħol wieħed?
Hawn xi ħadd li jieħu €1,000 FIL-ĠIMGĦA COLA bħal ma ħa GONEZI u SĦABU?
j brincat
Aug 1st 2011, 17:43
@Joseph E Briffa
Quote:.have you given a thought to the tax cuts? Who will benefit from the reduction from 35% to 25%? Don't you realise that only income earners above Eur35 000 p.a. would benefit? Isn't it odd that Malta's Labour is the only socialist party in Europe to clamour for tax cuts?
Who will benefit is immaterial because a promise is a promise. It was the trick that won Gonzi the last election, even if by a handful of votes.
Why bring in Labour? The promise was made by GonziPN and not Labour!
(jb)
Mr Joseph E Briffa
Aug 1st 2011, 17:57
Promises need not always be kept if they do harm to the economy. There is such a thing as the appropriate time for everything. Anyone who has done any sailing will tell you that he has to change tack every so often to ensure he doesn't wreck the boat. It's elementary. .
john muscat
Aug 1st 2011, 17:40
Before we voted to join the EU we were told that we will receive € 100,000,000 yearly from from the EU. I for one took the bait but I cannot see any in the list of revenues in the above story. Can anyone please explain why that amount is not mentioned?? Thanks.
Mr Joseph E Briffa
Aug 1st 2011, 17:59
The table gives percentages not absolute figures. Can you see the difference?
Mr Tony Gatt
Aug 1st 2011, 23:43
A hundred million yearly? Which joker told you that?
Ms Rita Smith
Aug 2nd 2011, 00:27
Well said Mr. \Briffa
Mr Joe Gatt
Aug 2nd 2011, 11:02
Ms Rita Smith
The Maltese Economy is doing so well, we are told. and I believe this is so, Look at the raise our Top Boys awwarded to themselves, this proves it, does`nt it Ms Smith??
Then all the Maltese should, rightfully think they deserve a share of the Cake, and one cannot blame them.
Who`s to blame, if one and all expect Tax Cut across the Board.
This is only Natural, as our Economy is Strong and doing Pretty well.
Do`nt you think?
Bernard Storace
Aug 1st 2011, 17:40
"Civil service recruitment will continue to be restricted but better conditions
for public sector employees are envisaged within the new collective agreement being
negotiated with trade unions".
Don't these people have enough of a cushy job already? What more 'better conditions' could they be requesting because since the advent of ceiling fans, air-conditioning and a combination of both it is no longer necessary for these pampered civil servants to down tools at 12 noon during the lenghty summer months. Let them work a full day, similar to those of us unfortunate enough to work for the private sector, and more work will be produced per capita and employing new recruits will not be so necessary and urgent, thus, this is a saving in itself.
Mr Tony Camilleri
Aug 2nd 2011, 10:55
Bernard Storace the government workers work more during the remaining 10 months to make up for their half days.
If you are being jealous just try to get the same conditions as them not try to destroy their conditions because you don't have them.
Mr Joe Gatt
Aug 2nd 2011, 15:36
Mr Tony Camilleri
`Bernard Storace the government workers work more during the remaining 10 months to make up for their half days.`
Would it not be better, if they go their place of work 16 straight hours in Winter Time, then, they may not be present during Summer. May save on energy too.
Applicable only to certain sectors, of course, but not to medical staff, ect.
M Sciberras
Aug 1st 2011, 16:56
I fault this government on almost everything but when it comes to the handling of the economy, sorry, even though this govt has not been perfect, Labour has still not given any indication of what it would do better or different. Abroad, people have no jobs. In Italy young people are emigrating or thinking of doing so - with salaries of euro 1000 a month for graduates and far higher costs such as housing than Malta's (if they are lucky) they have no life. In the UK, many will still be payong off their university loans until the age of 41 at the least .....only then will they be able to afford a mortgage. Labour must stop assuming that everyone is so (rightly) sick of the PN that they will automatically vote for it. Alot of people seem to think that taxes will fall if Labour comes to power. God forbid that any government reduces taxes, before or after the election. A deficit of 2,2% still means an annual increase in the government debt. Malta MUST start producing small annual surpluses to start reducing the national debt to far below the present level of over 70% of GDP. When it comes to the Cost of Living, no change in government is going to manage to lower it. Only fast economic growth and more of the right job opportunities can improve people's standard of living in malta. So Mr Muscat .....how about some specific plans?????
Saviour Aquilina
Aug 1st 2011, 17:23
I preafer the worst of PN than the good of PL, because they have nothing to give,only Bla..Bla Bla.
Michael Mercieca
Aug 1st 2011, 17:44
I agree completely.
E. Vassallo
Aug 1st 2011, 18:37
The problem with the PL leader is all rhetoric. is it an Alfred Sant deja vu?
Mr Lawrence Fenech
Aug 1st 2011, 20:34
Aqta kemm tghana gost Gonzi kemm ilu hemm taxxi ,multi loss of jobs galore u ta dan Euro 500 extra fil-but u dejjem Teatru nofs kedda u hela ta parliament ghal-parking u partime job.
Mr Robert Agius
Aug 1st 2011, 20:35
And in some places some people are starving, following your own logic. Our political choice is awful, granted. It would be foolish to say that the PN's handling of our economy has be good however. Comparisons with out nations are also not going to lead anywhere since the problems stems from the global capitalist system where the ones with money never pay for their short comings but lumped onto the working class (since there is talk about the financial crises). Living beyond one's means does not make any nation richer in the long run, only wise investment does. Selling off your best assets to the private sector, or worse, foreigners is NOT an investment, especially in the long run. Not having any political alternative is no excuse for the bad financial management the PN has shown during the last decade or so. Please note there is also the green party, and that is they main problem with this country - the duopoly the voters themselves have created.
Mr Tony Camilleri
Aug 2nd 2011, 10:59
M Sciberras and other pn apologists, curiosity killed the cat.
There was a surplus during PL Governments. When the PL left office in 1987, it left more than Lm500 MILLION in Malta's coffer which were not only SQUANDERED by the various PN Governments, but the PN Governments have led Malta into a €4.4 BILLION GOVERNMENT debt + €998 MILLION Government guaranteed debt and God only knows how much more debt we have which is being hidden.
J. Scicluna
Aug 1st 2011, 16:32
"One of the challenges of the Budget, he said, was to raise the participation of women in the labour market."
And how will this be done?
There is a very large number of women who left their jobs since they opted to stay at home to raise the family and who now find themselves unable to compete for jobs with younger/more qualified females (and males!).
For example, a woman who had a "good" office job 10years ago would find it rather difficult to return to a same kind of job today.
Mr David Bezzina
Aug 1st 2011, 16:28
The truth is that taxes are being imposed throughout the year and not on budget day.
Take the ever increasing fuel prices as an example.
Regarding the tax cuts,I think the government will be conveniently taking such measure in the eve of the next election.
j brincat
Aug 1st 2011, 16:19
'The governemnt could not bring about income tax cuts because it needed the money to keep companies afloat'
AND Dr Gonzi had promised that the tax cuts would come in the first budget proceeding the elections. There was NO financial crisis then! Obviously this promise was Dr Gonzi's trump card to win him the election. And he managed BUT only by a whisker!.
Nobody would be fooled the next time round.
(jb)
Ian Bugeja
Aug 1st 2011, 17:25
I would like to know your source...
Mr Joseph E Briffa
Aug 1st 2011, 17:27
@ J brincat.....have you given a thought to the tax cuts? Who will benefit from the reduction from 35% to 25%? Don't you realise that only income earners above Eur35 000 p.a. would benefit? Isn't it odd that Malta's Labour is the only socialist party in Europe to clamour for tax cuts?
Mr Robert Agius
Aug 1st 2011, 15:54
He said one would have to 'wait and see' whether the government could give further tax cuts in the nest Budget or the one after......the one after - the one before the next election!!!!! Same tactics, will people remain foolish too?
Mr Ben Harper
Aug 1st 2011, 16:15
Time will tell. Probably tax cust will be introduced in the budget before the elections and reverted after the elections by a Labour Governement. However, a change in government is a must !!!
Mr Duncan Scerri
Aug 1st 2011, 16:16
"will people remain foolish too?"
Some 40-ish percent will, yes.
Simon Oosterman
Aug 1st 2011, 16:40
Yes, they will.
Mr Julian Borg
Aug 1st 2011, 15:42
Such ignorant and uninformed comment!
Mr mario gellel
Aug 1st 2011, 15:20
A CONSOLIDATED BUDGET OR AN AUSTERITY ONE ?????
MOST LIKELY AUSTERITY IS ON OUR DOORSTEP.
Mr Ben Harper
Aug 1st 2011, 16:17
Since I am ignorant, can you please explain to me what austerity measures the government is proposing?
MaryJo Camenzuli
Aug 1st 2011, 16:28
Mr Gellel,
You can ask Joseph Muscat's model, Spanish Prime Minister Zapatero,
to tell you what austerity really means.
.
Mr Jo Camm
Aug 1st 2011, 16:33
Yes, after neext election, if PL is elected to power.
Igib skuza li sab barriera finanzjarja u jgholli l-hajja mas-smewwiet.
Take care!
Mr J Busuttil
Aug 1st 2011, 16:51
Come on Mario x'tahseb:
http://www.timesofmalta.com/articles/view/20110801/local/unemployment-stable-at-lowest-end-of-eu-scale.378319
Mr Leonard Brincat
Aug 1st 2011, 16:59
@ Mr Jo Camm
.Ma Nahsibx li hawn xi smewwiet ghola min kif qedin.U ma nahsibx li skuza li il pajjiz ghandu dejn ta 450,000,000,000.Staqsi lin nies tat triq jekk humiex jghixu tajjeb?Int wiehed mill ftit ghax hawn hafna iridu jistennew il paga biex ihalsu xi kont ta mhux biex johorgu lil familja. u taf x'hinu zgur li ghawn xeba zghazagh ghandhom xeba dejn sa ma imutu.
henry spiteri
Aug 1st 2011, 17:31
AUSTERITY means dejma u pijunieri u cake u wage freeze u cintorin u faham il Marsa .ma tridtx tkun aref mhux hekk?:
Mr Stephen Borg
Aug 1st 2011, 17:33
@MaryJo Camenzuli
Austerity mearusres come in many shapes and forms for example whilst the oil price is going down because of the international financial and economic mess many countries are going throught here in Malta the price is increased every month. One might note that fuel is heavily taxed in Malta and the government would take a very good share from these increases.
The wages are the same as they where years ago and yet these wages remain always the same so that we have a competitive country for foreginers which would like to invest in Malta and come here to enjoy the cheap labour wages we have in Malta. So much for a European citizen with sub standard wages.
These are austerity measures with the cost of living going up and the wages remaing the same. I cannot understand how in 2011 you still find people reasoning like you do. Unbelivable
Mr M Mamo
Aug 1st 2011, 17:36
Nies bhal Leonard Brincat nithassarom ... forsi s-SUper One ma qalulekx li l-Amerika ghandom mhux biss dejn imma qabzu l-MASSIMu li jstaw jisselfu? i.e. 14-il triljun - l-ikbar ekonomija fid-dinja, superpoter qed insemmilek mux gebla fil-mediterran!
Mr J Busuttil
Aug 1st 2011, 17:46
Leonard how is joe going to solve the youth issue your guess is same as mine as we have to wait a few days before the election imma than troppo tardi.
Mr Leonard Brincat
Aug 1st 2011, 20:28
Sur Mamo
.Ara veru se tispicca id dinja.Ahjar tithassar lilek innifsek jigiefieri int qed tghid li l-Amerka qedin tajjeb. Qisu xejn mhux xejn ghal nies bhalkhom li tiddejjen kwazi 5 biljuni
Sur Busuttil
Il problema taz zaghzagh mhix l-edukazzjoni bis imma hafna aktar min hekk.
U mirakli jekk jitla il lejber mhux ser jghamel ghax il pajjiz midjun esegerat
Mr J Busuttil
Aug 1st 2011, 20:43
Thanks Leonard for confirming that your guess is same as mine imma ghalissa kollux bahh ma PL
MaryJo Camenzuli
Aug 1st 2011, 21:11
Mr Stephen Borg:
You obviously just listen to Labour propaganda.
They won't report that we have one of the lowest unemployment rates in Europe.
Neither that 3,000 more people are working in full time jobs in the private sector over a year ago.
Nor that incomes are rising.
In fact, you might be interested in reading this:
http://www.timesofmalta.com/articles/view/20110731/local/Mr-Average-enjoys-income-boost-survey.378038
You won't hear Labour saying it, would you?
.