During a debate about the Budget aired on Net TV right after the presentation of the Budget estimates for 2014, Professor Lino Briguglio said that, in his opinion, this was a positive budget. Several other guests and representatives of civil society spoke in the same vein on the Nationalist Party media. This can only be interpreted as a quality certificate for the Government.

Apart from a number of PN officials who voiced their expected criticism, a general consensus has emerged in the country suggesting that the Budget was a good exercise in financial management. Even non-Labour leaning individuals have been saying that the Government is keeping its promises and is on the right track in achieving economic growth in a sustainable way.

With the help of this Budget, ably presented by Finance Minister Edward Scicluna, the Government is demonstrating it is able to bring stability to the country’s finances and that the country will generate more wealth. This is a budget that fills us with the courage to work even harder in the interests of the Maltese population.

The priorities listed by Prime Minister Joseph Muscat are being followed and delivered as promised. Reducing energy rates as well as income tax will allow everyone to spend more, generating economic growth and increasing everyone’s standard of living.

There are signs that the economy is doing better despite the continued instability in the international markets, the weak growth in the global economy and high unemployment in Europe and elsewhere.

I believe that the Government will achieve the 2.7 per cent deficit estimate for this year which would be an excellent result for Malta.

The Government is estimating a growth of 1.7 per cent next year, which is higher than the European average but it is being prudent and even more cautious than what international rating agencies are predicting for Malta.

The Government is expecting an income of €3.05 billion in the current year while expenditure will go up to €3.23 billion. The debt will reach €179.8 million and the estimated deficit should be €191.3 million or 2.7 per cent of GDP.

Nevertheless, there will be an increase for the cost-of-living adjustment of €3.49 per week, which will also be enjoyed by pensioners and students. On top of this, no new taxes have been announced in this Budget.

Capital expenditure will reach €453 million, €66 million more than last year. This is an impressive figure and will include the financing of projects at the University, MCAST and government schools. €94 million will be spent on infrastructure and €59 million on the protection of the environment.

Capital investment in the health sector will go up to €60.8 million, an increase of nearly €9 million. This will allow the Government to carry forward the policies it announced in the election campaign.

The income tax rate will be cut down from 32 per cent to 29 per cent for both singles and couples, which goes to show that the Nationalist scare tactics in the last weeks were simply an attempt to put spokes in the wheels of the Government and to score cheap political points. Income tax will also be reduced for people in the lower income brackets and students will now be covered until they reach the age of 23.

Tax on part-time work will be reduced too, with the limit extended to €10,000 from €7,000 and that for self-employed to €12,000. There will be no tax on the minimum wage. These are all measures in line with Labour’s historical tradition of supporting those sections of society that most need support.

There are several other positive initiatives in this budget. For example, first-time buyers will not pay duty on the first €150,000 they spend on their new home, which means a saving of around €5,000.

The Government is also giving education a priority just as it said it would do in the election campaign. It is allocating a recurrent expenditure of €411.7 million which represents an increase of €32 million. Around €15 million will be spent on school maintenance and the construction of five new schools in the next five years. Student stipends will also be increased.

A general consensus has emerged in the country suggesting that the Budget was a good exercise in financial management

As a member of the Transport and Tourism Committee in the European Parliament, I am pleased to note that tourism in Malta will continue to grow thanks to the measures announced in this Budget. A record number of tourists will be arriving in Malta this year while a revision in the national strategy for tourism will help make this growth a sustainable one for the future.

The Government is also prioritising the upgrade of roads and the improvement of traffic systems around the island.

It will also hold discussions with public transport operators about future improvements.

I am also pleased to note that €15 million will be given to Air Malta to continue strengthening its finances following on the €40 million granted in 2012.

As the Prime Minister said, this is a budget for those who want to work and all sectors of society are being incentivised to work more for the benefit of the country.

I congratulate the Prime Minister and the Minister of Finance for devising such a positive budget and wish the Cabinet well in the implementation of all the Budget measures.

joseph@josephcuschieri.com

Joseph Cuschieri is a Labour member of the European Parliament.

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