MaltaMedia.com

Finance Minister Tonio Fenech has just finished reading his Budget 2010 speech in Parliament. He insisted that this is a budget aimed at controlling the government’s fiscal deficit, with expenditure under control but investment in education, innovation and job creation still being made.

These are the highlights of the measures mentioned in his speech:

Finances:

Economic growth in 2010 expected to be 1.1% and inflation rate to be 2%. Deficit in 2010 expected to be 3.79%
Cost of living increase to be EUR €5.82 per week as agreed with social partners
Amalgamation of VAT Department, Inland Revenue Department and Customs Department.
Intensification of fight against contraband fuel.

Measures with a direct impact on citizens:

Support to families that consume less than 10,000 units in view of upcoming higher utility tariffs
€16.31 levy on credit cards eliminated and licenses for boats reduced.
Increase in excise on cigarettes by €0.15ċ and other tobacco products.
VAT on restaurants will not be lowered following conclusions of study released with Budget Speech
Incentives to suppost child care services
Creation of an entity to protect consumers
Change in MEPA tariffs as government will stop its subvention to the authority

Business and industry:

Malta Enteprise will continue to be transformed
Strong support to research, innovation and creativity in the economy, e.g. e-gaming, digital products and movie-making
Setting up of national fund for investment
Increase in budget for the Malta Tourism Authority
Reform of commercial vehicle licensing system
Clampdown on contraband fuel

Projects, social welfare and reforms:

Increased expenditure on education, including allocation of EUR 16 million on e-learning and more funds to MCAST, ITS and University of Malta
EUR 43.7 million for roadworks
EUR 60 million for government’s IT systems
Allocation of funds for transport reform
Millions to be spend on conservation of heritage, including repairs on Fort St Angelo.
Funding for Valletta City Gate project through schemes and not taxes
Implementation of Eco-Gozo vision with EUR 25 million over three years
Agency for the Youth to be launched soon
Increase in benefits for children in care outside their family.
Single means testing for social benefits
Pharmacy of Your Choice scheme to be expanded
Support for use of alternative energy sources
Installation of electricity smart meters
Work to start to connect Malta to European energy grid.

Together with the Budget 2010 speech the minister for finance also published two documents: the Eco-Gozo vision implementation and the study on the request to reduce VAT on Restaurants. The latter concluded that the reduction in VAT would bring no immediate tangible benefit to the tourism indistry while eliminating a source of revenue for the government. Therefore the reduction will not be implemented.

MaltaMedia.com News is providing extensive coverage of Budget 2010 in partnership with Favourite Channel TV.

Download the full Budget 2010 speech in Maltese and in English.