Malta Budget 2012
Highlights of Malta Budget 2012:
- The Economic and Monetary Affairs Commissioner has predicted that the 2012 Malta budget will face a deficit of 3.5 percent, which is more than their prediction for 2011 of 3%.
- The Maltese economy is supposed to grow at 2.3 percent in 2012.
- The social sector has been allotted 1 billion euros and €0.5 million has been earmarked to promote Gozo as a prominent tourist destination.
- The Malta budget 2012 will aim to turn around the trend of skilled professionals leaving the country for better opportunities.
- Parents will be brought under a new tax group and a fund will be set up for digital gaming.
- Malta will also set up a sports school of excellence in 2012 and the utility tariffs will stay the same as 2011 fiscal.
- The new budget has proposed an increase in the price of cigarettes and the minimum children’s allowance to 350 euros.
- By 2013 fiscal the periods for maternity leave will be upped by 4 weeks and senior citizens will be provided various incentives to stay home.
- The 2012 budget will aim at maintain the macro-economic consistency and overall fiscal sustainability.
This will be necessary to make sure that Malta continues to attract more investors and creates the number of jobs that are necessary to keep the economy and different social set-ups functioning properly.
- In the upcoming fiscal the government will look to invest in programs that help in Malta’s economic development and overall job creation.
- The government will also look to maintain its investments in infrastructure, environment and energy sectors and increase its allocations for training and education.
- The budget will look to properly address the requirements of the senior citizens, the families and that of other critical sectors of the national economy despite the challenges they might face in 2012.
- Malta expects to earn 2.5 billion euros from indirect and direct taxes and €419.2 million from additional sources.
- Compared to 2011 fiscal the governmental expenses are estimated to increase by 92.6 million euros.
- The combined capital investment for Malta and Gozo will amount to €425.3 million.
- In 2012 governmental debt will amount to 68.9 percent of the GDP and inflation will reach the 2.1% mark. The cost of living increase will comprise 4.66 euros for every week.
This amount has been calculated as per a system recently approved by Malta and its social partners.
- The Maltese industries will receive incentives amounting to 14.7 million euros in 2012, an increase of €5 million from 2011.
Malta Budget 2012 – Expectations:
The government expects that the European Union will not take any more action once the European Commission corroborates its budgetary forecasts for Malta. Olli Rehn, the Economic and Monetary Affairs Commissioner of Malta, has stated that there are possibilities of sanctions if Malta is unable to reduce its budget deficit to less than 3 percent of the GDP as it had previously pledged.
He has also hinted at the possibility that Malta will be unable to fulfill the previously set fiscal targets. If the government is able to meet the 2.2 percent deficit deadline it will be able to come out of the Excessive Deficit Procedure of the European Union. This will help Malta assure investors and generate more jobs besides having better governmental control over the economy.