The government’s estimated deficit may be over by Lm4 million (EUR9.31 million), but the EU has an outstanding bill of Lm6 million (EUR13.98 million) with Malta, said Finance Parliamentary Secretary Tonio Fenech yesterday.

Speaking at a press conference at which he published a programme of consultation meetings prior to the 2008 budget, Mr Fenech took a close look at the most recent financial statistics of the country.

While government had suspected that it will lose Lm12 million (EUR27.95 million) due to the revision of tax bands, however, in reality it had gained an extra Lm14 million (EUR32.6 million). Mr Fenech attributed this increase to the rise in employment, higher wages and higher corporate revenue.

“Such good results,” he said, “have allowed us to take on board initiatives that were suggested before last year’s budget but were not included.” The government had decided to increase the Malta Tourism Authority budget by Lm1 million (EUR2.33 million), expenditure on roads by Lm1.2 million (EUR2.76 million) and increase Malta Enterprise’s budget by another Lm1 million (EUR2.33 million).

The Malta College for Arts Science and Technology also benefited from a further Lm1 million (EUR2.33 million) injection to bolster its facilities in view of a larger intake of prospective technicians at Lufthansa Technik.

The government had also given the University of Malta a Lm500,000 (EUR1.16 million) bonus and had financed the MTV Isle of Music – Malta Special. Mr Fenech said the medicines bill had grown by Lm3 million (EUR6.99 million) due to a necessary increase in procurement to supply St Luke’s Hospital and Mater Dei Hospital.

As regards deficit, he said, the Lm50 million (EUR116.5 million) mark has been kept.

Mr Fenech also pointed out that the 2008 budget will most probably be presented during the second week of October. The budget speech is expected to be longer, as the Finance Minister – Prime Minister Lawrence Gonzi – will read his estimates both in Maltese liri and in euros.

Consultation prior to the budget will be held during September, as five public meetings have been scheduled by the ministry and another one will be held with the Malta Council for Economic and Social Development.

The first meeting, which will target female participation in society, will be held on Tuesday, 4 September at St James Cavalier, Valletta at 10am, the second meeting will be a business breakfast at Westin Dragonara Resort, St Julian’s on Thursday, 6 September that will discuss the 2008 budget in view of government’s 2015 strategy. On 12 September at 6.30pm at Robert Samut Hall, Floriana, there will be a meeting focusing on social issues, and young people will be invited to Ghar id-Dud, Sliema, on Tuesday, 25 September at 8.30pm to discuss youth, sports and culture. Environmental issues will be discussed on Thursday, 27 September at 6.30pm at the Animation and Communication centre in Birkirkara.

In the coming days, every family in Malta will receive a leaflet summarising the pre-budget document’s proposals. The leaflet will have a cut-off section that can be completed with suggestions and sent to the ministry.

Mr Fenech said more than 200 people have already submitted suggestions and 155 proposals are being analysed. He added that, last year, some 2,300 people sent their suggestions to the Finance Minister through the leaflets they received at home.

These can be sent to Budget Team 2008, Finance Ministry, Cavalier House Old Mint Street, Valletta or e-mailed to budget2008@ gov.mt