VAT
The standard VAT rate remains untouched at 18 per cent. The government expects to collect €48 million more.
Income tax
The top rate for those earning less than €60,000 drops to 25 per cent from 29 per cent at a cost of €19 million. Minimum wage earners will remain tax exempt. Despite the cuts government expects to collect €79 million more, driven by higher economic growth. A preferential 7.5 per cent tax on part time work for footballers introduced last year will be extended to waterpolo players.
Social security
There are no adjustments to national insurance but greater economic activity and measures meant to encourage inactive people to join the labour market are expected to yield €46 million more.
Customs and excise
Existing excise taxes on fuel, tobacco, cement and mobile telephony have increased. Wine and fish farm feed have been taxed for the first time yielding €1.9 million and €2 million respectively in new revenue. The eco-contribution on tyres and ammunition has been transformed into an excise tax.
Licences, taxes and fines
The government is expecting to collect €10 million more. Document duty on insurance policies will increase to 11 per cent from 10 per cent while annual car licence fees will increase by between €10 and €15.
EU grants
Fund applications for the restoration of various valleys are expected to be filed next year while EU money will also be used to boost research at university. Millions of euros will continue being spent on major road works that form part of the Ten-T network.
Non-tax revenue
Non-tax income is expected to increase by €17 million with the cash-for-citizenship scheme expected to yield another €15 million as was projected in 2014.
Expenditure
Education
The education vote sees the allocation for the afterschool programme Klabb 3-16 and the summer school programme increase by half a million euros to €670,000. The free child care programme has an allocation of €8 million. The ministry vote includes an investment of €68 million in capital projects.
Social solidarity
This ministry has the largest budget of all. It includes a one-time €8 million bonus to make up for the low COLA increase and a new child supplement benefit for low income families worth €8.5 million. Retirement and old age pensions top €464 million while the government has allocated €4.2 million for public social partnerships.
Health
Medicines and surgical materials carry the heaviest price tag at €84 million. However, most of the programmes and initiatives will have static budgets. Money to outsource medical services to cut waiting lists will be cut by €500,000 to €2 million. The allocation to finance the Pharmacy of Your Choice Scheme will increase by €2 million to €8 million.
Transport and infrastructure
The ministry vote includes subsidies for maritie transport (€1 million), public transport (€23 million) and transportation between Malta and Gozo (€400,000). The restoration of the Triton Fountain will cost €500,000. Roads will get €11.8 million for construction and maintenance apart from millions in EU funds.
Gozo
Most votes in the Gozo Ministry have remained static but the allocation for tourism promotion has increased by €200,000 to €700,000. Services rendered to the elderly and the disabled will come at an expense of €960,000 while €100,000 will be spent on a feasibility study for the airstrip.
Other
The various other programmes and initiatives that weigh down on government expenditure tot up to €1.3 billion. These include an allocation of €28.5 million for the Malta Tourism Authority and a subsidy of €300,000 to promote culture on TV stations. The army and police will get €105 million and the Commonwealth summit will cost €4.5 million. A new foundation for social purposes set up by the President will get an injection of €700,000.
Source: Budget 2015, Finance Ministry
Graphic: Times of Malta Studio