Alternattiva Demokratika yesterday called on the government to increase the proposed Lm8 million it will be distributing in the budget to Lm18 million.

AD – the Green Party, said the government’s allocated sum was not enough, describing it as “miserly”.

The party presented a series of proposals that suggest how the government can provide more than double what it has to spare.

“The government is stating that the sum of Lm8 million is what it will have to spare in the coming budget. The sum is insufficient. While we recognise the importance of meeting the Maastricht criteria, one of which is reducing the deficit to three per cent of GDP, we believe that much more can be done in this budget without over-running the budget targets,” AD chairperson Dr Harry Vassallo said.

He added that the party has come up with proposals to boost government spending without affecting Malta’s obligations with the EU.

“We are suggesting… that the sum available increases to Lm18 million… and that additional funds are raised primarily by an increase in the tax rate on banks and telecommunication companies from 35 per cent to 40 per cent.”

AD are also proposing that the government steps up measures to combat rampant tax evasion, reduces government costs by clamping down on social security fraud and reduces its operating costs.

If these measures were put in to effect, the government would have Lm18 million to spend, AD said, adding that it was then proposing a set of budget measures that would benefit those who required assistance.

AD spokesman on finance Edward Fenech said: “Rather than a general reduction in income tax, which would give more to those earning more, we are proposing that assistance be targeted to those families raising children. Therefore, we are proposing an annual cash benefit of Lm40 for every child payable to families. We are also proposing heavy investment of Lm 1 million to subsidise childcare centres.”

AD is also proposing a further Lm1.5 million to be invested in tourism, especially in Gozo.

“We are also proposing a restructuring of the energy surcharge system where the rate of surcharge would be determined according to the level and trend in consumption rather than the present system that imposes a punitive 64 per cent surcharge on everyone irrespective of consumption levels. We are also proposing that the venture capital fund of Lm1 million, originally proposed by the government three years ago and never implemented, is made available in the first quarter of 2007.”

AD also insisted that the departure tax be removed and replaced by a carbon tax of Lm10, the proceeds from this tax being invested in improving public transport.

AD is also proposing:

• a stepped reduction in the income tax rate on small companies from 35 per cent to 30 per cent;

• a tax deduction for salaries paid to both spouses working in family business;

• a change in national insurance payments to a pro rata system; and

• the elimination of the electricity surcharge for the poorest 17,000 families.

A national campaign to promote an energy-saving culture to families, by distributing heavily subsidised energy-saving light bulbs to households through local councils;

An increase in the marketing funds for tourism of Lm1 million for investment in promotion in new markets, particularly North America and the Far East;

Direct assistance of Lm0.5 million for tourist establishments to invest in energy-saving.