Another budget - the eighth consecutive one for a Labour administration - has come and gone.
Finance Minister Edward Scicluna took to Parliament on Monday evening to lay out the government's economic plan for the coming year, in reflection of a year which was very much characterised by the Covid-19 pandemic.
In a speech which took the best part of two hours and a half, Scicluna focused on six major sectors: social measures, the economy, the environment, law and order, education and health, and infrastructure.
The Malta Independent covered this year's budget at length through a live commentary which can be viewed again below.
22:30 - What's in it for you?
We've broken down the main measures which Scicluna spoke about during his speech, so you don't have to.
Check them out, here.
On that note, in fact, we will be bringing this live commentary to a close. No doubt the analysis and verdict on the budget will continue to be a matter of debate for the days to come, so be sure to keep your eye on www.independent.com.mt and to follow us on Facebook to make sure you don't miss a thing.
Thank you for following!
22:17 - 'These were recycled measures' - Bernard Grech
On the other side of the political fence meanwhile, PN Leader Bernard Grech is addressing a press conference.
We are living in extraordinary times and we would have expected extraordinary measures from tonight's budget, Opposition Leader Bernard Grech said in his reaction to the budget.
"These were recycled measures we have heard over the years," he said, adding that the budget measures are short-term fixes but do not look at long-term effects of the pandemic.
You can follow his press conference, here.
21:58 - Sometimes you need someone to lighten the mood
In today's case, that someone seems to have been Culture Minister Jose Herrera - who shared a brief light moment with backbencher Manuel Mallia while Scicluna was addressing Parliament.
You can check that out here.
21:40 - 'Rich in social measures, vague on economic recovery'- Chamber of Commerce
The Chamber notes that this budget does not address the massive impact that Covid is having on operating costs for businesses, and introduces no new measures to support businesses that are struggling on this front.
It reflects Government's optimism that the economy will recover in the short term, an optimism that is not shared by businesses at large. The Chamber hopes that should the Covid crisis deepen or extend beyond the next six months, further support beyond that included in this budget will be forthcoming.
In this regard, the Chamber feels that this budget falls short on the detail on how to achieve this. The Chamber shall continue to pursue such calls but meanwhile comments on the following specific measures announced this evening.
The Malta Chamber welcomed several measures, including the extension of the wage supplement scheme linked to the loss in turnover of operators; and the extension of the voucher scheme which the Chamber believes should have been implemented immediately rather than January.
The Chamber commended Government's resolve in terms of Good Governance measures such as the strengthening of the Attorney General Office and Office of State Attorney. Furthermore, it is noted that the authorities are addressing the recommendations highlighted in the 2019 Moneyval report. The positive results of latter's assessment will be crucial due to our dependence on foreign investors and the country's importance as a financial jurisdiction.
In advance of this Budget, the Chamber appealed to Government to implement a long-term action plan to incentivize businesses to drive the wealth and wellness of society, with a shift towards resilience, sustainability and improved quality. This needed be done in tandem with good governance practices, to rise above the current predicament and move ahead with confidence, to restore stability and the country's reputation, as soon as possible.
21:23 - The Prime Minister addresses the public
Prime Minister Robert Abela is now addressing the public on the Budget. You can follow his speech below, and find the full, continuously updated report here.
21:18 - Bernard Grech's first reaction
Opposition Leader Bernard Grech issued his first reaction to the 2021 budget, stating that it does not look to the future.
"This was not a normal budget," he said in reference to the Covid-19 pandemic.
This is a budget that forgot about tomorrow, he said. "They forgot to address the problems that we are in and those that we will face in the immediate future."
He said that there are positive proposals, and others that were recycled from years past. "But we have a government that fears facing reality. The reality of the health sector and the tourism sector."
"The reality of the financial situation that thousands of families face was forgotten. The reality of the uncertainty due to the Prime Minister's mismanagement was swept under the carpet."
"He said that nothing was said on how energy bills will be addressed in the face of all that became known about the Electrogas contract."
"We heard nothing about how we will help the 83,000 people at risk of poverty. We heard nothing about the holistic plan for businesses to meet the challenges they face, and we heard nothing about Gozo."
He said that the budget plans for today, but forgets about tomorrow.
21:13 - Budget 2021 focuses on COVID-19 concerns but lacks long-term vision - MEA
The Budget 2021 focuses on the immediate concerns due to the COVID-19 pandemic through a set of measures but needs to be supplemented with a longer-term vision for the country, according to the Malta Employers' Association (MEA).
This can be done through identifying new economic sector that offer economic potential, it added.
"The fiscal packages announced during 2020 have been effective in sustaining the economy, and it is regretful that strategic decisions during the summer months resulted in an increase in Coronavirus cases," it said.
MEA added that the government is rightly utilising its fiscal manoeuvrability, due to surplus budgets in previous years and a fall in the Debt-GDP ratio, and, as expected 2020 and 2021 will incur substantial fiscal deficits which will increase the debt ratio to close to 60%.
In addition, the association highlighted that the extension of the COVID supplement to March 2021 is welcome and will certainly be influential in keeping unemployment relatively low in the coming months.
"This can be sustained through the €120 million React EU funds and other funds which the EU has issued a crisis response."
"The budget consists also a sprinkling of benefits and fiscal incentives targeting various sectors of society, with the increase in pensions and the VAT exempt thresholds being particular effective," it said.
These measures and tax incentives will stimulate domestic demand. However, the increase in optional leave is a frivolous measure and will unnecessarily erode our national competitiveness.
It stated that this not a 'voucher budget' as the vouchers are targeted interventions that have been effective in helping the catering sector, and the re-issuing of these vouchers is considered to be positive. This measures which is costing around €30 million, has to be seen against a backdrop of a national budget that exceeds €4 billion.
Due to the current situation, the association also highlighted that it is difficult to forecast the outcome of the budget and overall economic performance in 2021 due to the duration of the pandemic and due to the outcome of the Moneyval evaluation.
The government will also have to address the issue of the correspondent banking in the coming months, the association said.
21:02 - Budget recognises the challenges of the pandemic but limited in the field of education - MUT
The Budget 2021 recognises the challenges of the pandemic, but is limited in the field of education, the Malta Union of Teachers said as a reaction to this year's budget.
"We are aware that this budget is very different from the normal ones due to all the circumstance that arose in 2020. Pandemic mitigation measure, along with school infrastructure are costly and appear to have been the government's focus on this budget," said MUT.
Yet the union believes that the government should look beyond the pandemic restrictions and give direction to the sector along with adequate resources for educators to have work.
"The budget speech was limited regarding education, the MUT will be looking at the detailed estimates and speeches of the Ministry of Education and Labour in order to better understand what's planned."
The union pointed out that while the government is thinking of quick solutions to problems when they arise, it should also think long-term in order to alleviate the serious problems educators have, and it should also think long-term in order to alleviate the serious problems educators have.
The MUT in particular refers to the crisis of lack of educators, where the union has been pushing for years in order to have a number of incentives, such as for more young people to turn to the profession. In fact it is unfortunate that one of the few services mentioned in the budget, which is linked to literacy, was stopped due to circumstances. "The MUT hopes that next year this service, together with others will not only get them back on their feet but will be strengthened so that educators can continue to offer these invaluable services."
20:57 - And just like that...
...we're done! Scicluna concludes his speech in Parliament. Do sit tight with us though, we are going to continue update this commentary with reactions from constituted bodies and others as they come in.
Meanwhile, Prime Minister Robert Abela will address a press conference on what we've just heard very soon, and Opposition leader Bernard Grech will follow suit a bit later in the night.
20:55 - 'The biggest and best budget I've ever presented'
Scicluna says that he has arrived at his concluding notes - something which is met by some sighs of relief from the Opposition benches, which is in turn met with laughter and derison from the government benches, with Scicluna remarking wryly that the Opposition didn't want to hear more.
He said that the budget is the biggest and best that he has ever presented, and one which shows that the government is ready to invest hundreds of millions for the economic machine to keep going, and even reach levels it has never reached before.
20:54 - Malta to continue seeking place on UN Security Council
The government will continue meetings with Members of the United Nations during 2021 to demonstrate the highly relevant credentials Malta has to offer as a member of the United Nations Security Council, following its candidacy for a non-permanent seat, reserved for state members of the Western European and Other Countries in the Security Council for a two-year term between 2023 and 2024.
Malta needs to obtain the two-thirds votes of the United Nations Members in the election which is expected to take place in June 2022 at the General Assembly in New York.
Meanwhile, options are being evaluated for embassies to be set up in Ethiopia and in Latin America.
20:52 - IT system being developed to keep track of people entering and leaving Malta
Apart from the new, recently announced national ID cards, the government is cooperating with other EU countries to protect people's identity and ensure that the islands' borders are protected from organised crime and the threat of terrorist attacks, a measure called smart borders.
An IT system is being developed in this regard to keep track of every person entering or leaving Malta and Gozo. The government will also be investing in more online services for citizens from the public sector as well as evaluate how to strengthen the use of digital identity which will facilitate the transfer of information.
Inspections at workplaces will be stepped up to reduce abuses and exploitation of people at the workplace and ensure that there is no human trafficking or forced labour.
Investment Programmes for Residency and Citizenship will be reviewed and updated while more stringent criteria will be introduced to continue ensuring that individuals who are accepted under these schemes are worthy of having citizenship or residence.
20:51 - Centre for LGBT community to be set up
The government will be incentivising employers to offer measures that should lead to a better work-life balance, incentivise men to participate more in family life and thus strengthen gender equality.
It will also be establishing a Commission for Human Rights and Equality to address human trafficking, implementing the Gender Equality Strategy and introduce the first National Action Plan Against Racism and Xenophobia. Other reforms like that for cannabis will also be addressed while the necessary reforms for equal representation in Parliament will be introduced.
Furthermore, a centre for the LGBTIQ community will be set up, with the aim to bring a number of services and facilities provided by the government and civil society to the LGBTIQ community under one roof, while providing financial support to the LGBTIQ community in bringing Euro Pride 2023 to Malta.
20:48 - Dedicated unit for deported failed asylum seekers
The government's main priority will remain the prevention of new migrant arrivals and the fight against criminals who put lives at risk.
Its second priority is the return of immigrants who do not deserve asylum in Malta.
The government will be strengthening the International Protection Agency and the police immigration division while creating a unit that works specifically on the return of these persons.
20:47 - Strengthening Civil Protection
Throughout the next year, the Civil Department's vehicles will continue being changed to newer models with specialised vehicles.
Next year will also see the introduction of the first fire boat for the Department with the ability to extinguish fires and carry out rescues at sea even in bad weather conditions.
Existing fire station infrastructure will also be developed, including ongoing works at the Santa Venera firefighting station.
20:46 - Police Force and Armed Forces
2021 will be the first full year during which the Police Force will be shaping its work on the transformation strategy which with 49 concrete actions, aims to change the force from a police force to a police service.
The project will start addressing localities which offer greater challenges to address, including Marsa, Hamrun, St. Paul's Bay and St Julian's.
It is also planned to complete the Command and Control Room at the Police Headquarters and modernize the forensic section.
In view of the increase in the prison population, more investment will be made in infrastructure to make better and more effective use of the correctional facilities space. New vehicles will be purchased with the aim of making the escorts of prisoners safer.
The psychology section will also be strengthened and a program for young offenders will be put in place.
The Agency for Crime Victims will be up and running with the aim of bringing together under one roof various services for victims of crime while introducing new ones.
In the Armed Forces of Malta, investment will continue so that soldiers have better tools to work with and the Special Operations Unit will be further strengthened, while communication systems will be improved.
A Security Monitoring Centre with the most advanced technology will be launched, when it comes to the Protection of Critical Infrastructure. It will operate 24 hours a day.
20:45 - Chamber of SMEs largely pleased
The Malta Chamber of SMEs said that it is pleased to see a number of its Budget proposals taken up.
The SME Chamber welcomed the extension of the wage supplement till end of March, and the fresh round of vouchers.
"The Malta Chamber of SMEs appreciates the fairer distribution of the allocation of the vouchers between sectors."
Budget 2020 also incentivises investments to help businesses in their digital and sustainable transformations, the Chamber said. "Businesses are being directed to re-engineer their business models and invest heavily in digital tools."
The Chamber did say, however, that tax incentives and the lowering of VAT rates would have boosted businesses' ability to invest. "A step that many other EU countries have taken, which is absent in Malta's 2020 Budget. On the other hand however the SME Chamber positively notes the widening of the bracket for tax exempt businesses from €20,000 to €30,000."
The Chamber said that the budget aims to instill confidence in Maltese businesses and aims to sustain Malta's economy during these exceptional circumstances.
20:43 - Investing in the construction of a specialised building for the preservation of confiscated assets
The government will continue to invest in the Asset Recovery Bureau through new technologies for the exchange, management and retrieval of information. The government will also invest in the construction of a specialised building equipped with the latest technology to host an asset tracking laboratory and adequate space for the preservation of confiscated assets.
The purpose of this building is to preserve and protect previously confiscated assets before the disposal.
The government will also launch the modernisation programme for the Office of the Government Notary and Chief Archive, which will include the process of the digitalisation of notarial deeds, and ensure that all public deeds and wills are recorded in the public register on time and that all relevant taxes collected by notaries are effectively paid to the relevant entities.
20:42 - Improvement of efficiency in the judicial procedure
The government is also proposing better efficiency in judicial procedures and Court Services Agency, to ensure best support offered to members of the judiciary.
An extension of the retirement age for Judges and Magistrates is to be proposed, as well as new appointments, in the bench of the Judiciary.
To reduce the outstanding work of the Court of Appeal, the government will be giving the Court the opportunity to hear only those cases where it is considered necessary, and will also introduce the possibility for hearings in civil proceedings to be held through live video conferencing. There will also be an increase in the compositions of the Court of Civil (Superior) Appeals in order to expedite the process on the appeals and the citizen is better served and within reasonable time.
The government will be launching a research project on Domestic Violence with the aim to improve and facilitate services to vulnerable victims of violence. The research will push to improve the overall efficiency of the justice system in this sphere of operation and also launching a training programme for professionals working in the field.
20:40 - Past reforms
After the government introduces a package of laws based on the Opinion of the Venice Commission, discussions will continue in a Constitutional Convention which will be chaired by the President of the Republic.
The government promised that it will continue to strengthen the institutions, with the help of experts such as World Bank, which should lead to further strengthening the Attorney General's Office and in the State Attorney's Office. This reform phase includes the design of internal structures, administrative procedures and organisational functions of the two offices to ensure transparency and safeguard the rule of law in Malta.
20:38 - Final stretch...
We are into the final stretch now as Scicluna turns to rule of law and enforcement.
20:36 - National Symposium on Culture and Creativity planned for 2021
When it comes to culture, there is already a Symposium on Culture and Creativity, planned for next year's calendar, which will focus on the creative arts. Budget 2021 will see the government continuing to invest in culture and local historical heritage.
The government will continue to invest in the Superintendence of Cultural Heritage when it comes to further excavation of archaeological sites.
Regarding those in the cultural and creative fields, the government will breathe new life into those individual artists, cultural operators and service providers, who provide ancillary service in this sector.
The application of digital technology will become an integral part of artistic and cultural production, and the government is reflecting on the best ways to encourage the interdisciplinary aspect between technology, research and the arts.
The government will continue investing in Malta's Centre for Creativity, Spazzju Kreattiv.
Next year the government will continue investing in the national language through the investment in a digital Maltese language spell checker.
The government will also continue with the investment in the restoration of the Manoel theatre and looking into carrying out the Carnival Experience project. The government will also continue exploring and opening more underwater sites, which will attract more tourists and professional divers to Malta.
20:35 - EquestriMalta to replace Malta Racing Club
When it comes to competitive sports, the government is working to ensure that every sport includes fair place and reduce corruption amongst athletes. With this in mind, the government will set up the Authority on Integrity in Sport Malta to ensure there is one entity which is observing this negative aspect within sports.
When it comes to horse racing, a new authority, EquestriMalta, will be regulating and organising horse racing. The new authority will be replacing the Malta Racing Club.
20:34 - Voluntary Organisations
From next year, voluntary organisations, which are registered as such and are following what is stipulated in the law governing those same organisations, will be exempted from paying tax on any profit they make during the year, if their annual income does not exceed fifty thousand euros (€50,000).
At the same time, we will be seeing that voluntary organisations are transparent about the donations they receive and how these donations are spent in order to ensure the maintenance of the trust that the Maltese and Gozitan public has in these organisations.
20:33 - National Politics on Youths
With regards to youths, the budget notes the ongoing public consultation on National Youth Policy 2021-2030, entitled 'Towards 2030 - Reaching out to, working with, and supporting young people', which will be focusing on all young people aged 13-30.
The government is promising that all those people, groups and organisations working for, and with young people, have the opportunity to participate actively and contribute to the development and implementation of this policy.
20:32 - Free internet for students who continue their education after turning 16
The pandemic saw schools and educational institutions close down temporarily due to the Covid-19 pandemic. This resulted in e-learning, where students continued their education from home, showing the importance of the internet. For this reason, the government said that it is giving students who choose to continue studying after concluding their secondary education free internet access for one year.
The government also announced that the National Commission for Further and Higher Education will regularise online education.
In addition, online session for parents will be offered so that, together with educators, they can contribute and help with their children's education.
20:31 - Infrastructural improvements at schools
One of the government's biggest budget proposals for the education sector meanwhile is an investment in a new sports complex at the University of Malta.
The complex will include, among other things, performing arts facilities, an indoor track, a full-sized football pitch, an Olympic track and a new building for the Institute of Physical Education and the Performing Arts School.
The budget also included a proposal that will see more improvements made at MCAST and the construction of more facilities in this institution so that students, educators and the community will have access to sports, recreational and educational facilities.
The government will continue with works on the construction of two new schools - the Rabat (Gozo) primary school and the school in Msida. In addition, work will continue on the extension and modernisation of the Santa Lucija Secondary School and the San Gorg Primary School in Qormi.
20:30 - Elderly care
A number of proposals regarding elderly care were put forward. Among other things, the government will work on providing more beds for elderly care, both in public hospitals as well as through public-private partnerships or the purchasing of beds from the private sector.
The government's main aim, however, remains for the elderly to live within the community and remain active. For this reason, the government intends to increase the number of Active Aging Day Centres as well as Night Shelters, a number of which will focus on special conditions, for those suffering from dementia and for persons with disability.
The government will improve the Home Help and Telecare services. It will also extend the services provided in localities, such as the Silver T service and the phlebotomy service, and will also work giving new life to the KartaAnzjan.
20:28 - New palliative care centre to be opened
The government said that it anticipated the impact of the pandemic on other chronic illness and that it intends to continue offering free medicines and to introduce new medicinal products aimed especially at helping patients who suffer from chronic illness.
Treatment for Osteoporosis will also be introduced, and through this measure the government will address the needs of patients, especially those who are vulnerable elderly patients, whose quality of life normally suffers due to this condition.
New psychiatric medicines will be added to the government formulary.
The government wants to invest in more holistic cancer care, given that a number of patients need to travel abroad for treatment or require specific oncology medication. For this reason, the government will open the Centru San Mikiel - a facility that will provide professional palliative care.
This project will be made possible through partnership between the Government and Hospice Malta.
It also plans to expand the Survival Programme service that supports patients and their families overcome cancer.
In terms of Mater Dei Hospital, the government will update the hospital's infrastructural network; extend the Remote Patient Monitoring programme to help more patients with chronic illness; introduce new Clinic management Systems and a Telemedicine Client Support Centre.
The government will, in 2021, launch the Strategy for the Elimination of Hepatitis C.
20:25 - MDA welcomes extension of First Time Buyers scheme
The Malta Developers Association said it is satisfied that several of its proposals have been taken on board by the government. Particularly, it welcomed the decision to extend the First Time Buyers scheme, which has already proved successful over the past years, and to introduce fine-tuning tools to make property more affordable.
"Following the very positive results achieved through the introduction of lower taxes for property buyers and sellers last June, which have resulted in record promises of sale agreements registered in the subsequent months, the MDA also welcomes the extension of these incentives, which should continue to ensure more growth in this crucial sector."
20:24 - Restoration and Regeneration of property
Another scheme which will be introduced involves individuals or companies who will be given the chance to apply for the extension of the lease on commercial property to make an investment.
The government said that the projects in Marsaxlokk and in 'il-Gnien tal-Mall' in Floriana will be completed. Similar regeneration work will begin in Cottonera, including work in Senglea, Kalkara, Vittoriosa as well as on the promenades of Msida and Pietà.
Work will continue on the extension of Ghadira Bay, as well as the continuation of parking in Ghadira and Birzebbuga.
In addition, work will commence on historic sites such as the Cisterns, the Interpretation Centre, as well as the restoration and opening to the public of the Main Guard Building.
Regeneration and restoration will also continue at the Maritime Museum, including the naval furnaces in the building creating a new experience throughout the Museum.
20:23 - Strengthening the construction industry
A Compensation Fund will be introduced for the first time and in recent months, a number of individuals training for operating as property sales agents and consultants will lead to issuance of a license for real estate agents; property brokers and property consultants will be able to work as such.
The Building and Construction Authority will be set up which should lead to an industry operating more professionally and reducing the risk of accidents where construction work is being carried out.
An Independent Tribunal will also be set up to hear appeals against any decision taken.
20:22 - €11 million in investment on sports facilities
An indoor rowing tank facility and an outdoor velodrome are part of an €11 million which the government is investing in sports facilities across the island. The investment is part of the preparations for the Small Countries Games which in 2023 Malta will be hosting. The government will continue not only to modernise sports facilities but also add a number of facilities to address the need of different sport disciplines.
Over the period of three years, the government will push forward an investment of €11 million towards a number of projects.
The budget will also include the construction of a Rugby Complex at Kordin, which the Planning Authority had approved of the plans back in July of this year.
20:20 - New blood bank to be built
Scicluna announced that a new blood bank will be built amongst many other projects of restoration and renovation.
A centre specialised in the processing and storage of stem cells and which can provide bone freezing and corneas storage services will also be provided.
20:17 - Reactions start pouring in: mixed bag for FORUM
Trade union federation FORUM said that the budget presented by Finance Minister Edward Scicluna focuses on helping families, businesses and workers in the extraordinary situation the country currently finds itself in due to the Covid-19 pandemic.
In it said in its initial reaction to the 2021 budget, FORUM said that the government is doing this through measures like extending the wage supplement period and reissuing the vouchers scheme. FORUM welcomed the announcement of another day leave being given for feasts that fall on a weekends, and aid for pensioners and people with disability. It said that the government did this while also looking at better good governance principles in light of the reports that have been issued.
FORUM was, however, disappointed that the electoral promise for parents to use part of their sick leave when their children are ill was not mentioned.
20:15 - Changing the face of industrial infrastructure
The government will be embarking on an investment program of more than €450 million over a period of seven years. This will include an investment in the new Life Sciences Park, Kordin Business Centre, an investment in the regeneration of an area that was used as a landfill in Marsa and which will create a new space for SMEs as well as an investment in a logistics centre.
Infrastructure Malta is determined to complete the Crafts Village in ta' Qali by next year and a plan has been drawn up to give full support to those businesses that have fallen behind in building their project. Thus, the upgrading of the Craft Village is completed all at once.
As part of strengthening the aviation structure, the project related to the reconstruction of the Lima taxiway will begin.
The program which plans to build 500 apartments and the construction of nearly 700 more apartments will continue. Simultaneously, work will also continue on a maintenance and beautification program in the apartment blocks and government building areas.
20:13 - Safe Cycle and Walking Routes Project
These road projects will also be incorporated with the construction of wide sidewalks, bridges and dedicated bicycle lanes in order to have a sustainable infrastructure to facilitate the use of bicycles and walking.
Works on five maritime projects which are related to the new breakwater in Marasxlokk will be completed; four piers in St. Thomas Bay and Marsascala; the reconstruction of the pier in Cirkewwa and facilities for fisherman in the Port of Mgarr in Gozo.
With regards to new projects starting next year, among others, there will be improvements to the infrastructure around the coast which includes new facilities for passengers using ferries as a means of transport - in Sliema, Cospicua, ta' Xbiex, Bugibba and Birgu. The necessary repairs of existing piers will also be taken care of.
The final preparations that will eventually lead to the launch of the Grand Harbour Clear Air Project will continue in order to develop a shore side electricity system which reduces the pollution of the air generated from cruise liners.
20:12 - Infrastructure
Moving on to Infrastructure, Scicluna noted how major projects including the Central Link Project and the new junction between Pembroke and High Ridge in Swieqi will be completed next year. Work will also be carried out on the Kirkop tunnel and the Airport Intersection Project, the Luqa Junction Project and Msida Creek Junction.
Preparations meanwhile will continue for the rebuilding of the Marsascala bypass and a new subway adjacent to 'il-Bieb tal-Bombi.' In addition, maintenance and improvement work will be carried out on various residential and rural roads, as well as renovation of the four main tunnels of the country - in Santa Venera, Hal Kirkop, tal-Qroqq and ta' Giorni.
20:11 - Grant to make wheelchair accessible in new taxis
There will be a budget allocated to a number of new taxis who will be awarded a grant of €10,000 upon registration of a new wheelchair accessible taxi vehicle (WAT).
This grant only applies when another vehicle, with an internal combustion engine, is at least ten years old from the years of its manufacture and has had a license valid for the last five years and needs to be registered and scrapped at an authorized facility.
20:10 - Cost of certain Motorcycle licenses reduced
Schemes where a grant equivalent to a full VAT refund is granted on bicycles and electronic bicycles, will be extended once again. This also applies to the scheme that incentivizes the purchase of motorcycles, scooters and bicycles assisted by an electric motor for a maximum of €400.
For those who change their vehicle to run on gas instead of petrol, this grant will not rise to €400, but to be eligible, the reduction of the CO2 emissions of the said vehicle must be reduced by 25%.
This scheme will also be extended to all passenger and freight transport vehicles. The grant will amount to a maximum of €800.
As for the annual circulation licence for motorcycles with a cubic capacity between 125cc and 250cc, it will be reduced from €65 to €25.
20:08 - Vehicle scrapping scheme to vary depending on the emissions of the new vehicle
€1.5 million are to be allocated to vehicle scrapping schemes.
Schemes in place for scrapping vehicles that have been in circulation for more than a decade, and which are replaced by less polluting vehicles, will be awarded a grant that varies according to the level and category of the vehicle.
The highest grant amounts to €7,000.
The measures related to the purchase of electric vehicles will be extended for another year as these measures are intended to further increase the number of less polluting vehicles.
20:07 - 'Eco-Intermodal Hubs' in strategic locations around Malta
The government will also install five 'Eco-Intermodal Hubs' in strategic locations around the Maltese islands, where the public will be given access to all information on means of transport, rental of e-scooters and e-bikes. One can also charge the mobile phone and use WIFI.
With regards to electric vehicles, the installation of a mixture of 130 "medium-fast" and "fast-charging pillars" will be continued and available to the general public.
The government will conduct a study to change from fuel-powered cars to electric in the Public Service.
20:05 - Schemes for Green Walls on private residences and shops to be introduced
A new air quality monitoring station will be set up in Xemxija and a plan on improving air quality in the country will be drawn up.
Work on the drafting of the National Biodiversity Strategy will continue.
Work on the Ta' Qali National Park extension - the largest ever environmental project in Malta - will also continue. There will be more urban greening projects, including in squares and open spaces.
There will also be schemes for Green Walls on the facades of private residences and shops, as well as Grey-to-Green projects.
20:03 - Importation of single-use plastics banned as from 1 January
In a significant measures, the importation of single-use plastics will be banned from 1 January and the sale of all single-use plastic products will be banned in 2022.
This was announced during the last Budget, but no exact time-frames - save for the years - was given.
20:01 - Waste Management Plan to be drawn up by the end of this year
The new Material Recovery Facility, which will optimise recycling, and a facility that will produce compost for farmers will be built. A new plant will replace the facility in Marsa where clinical and animal waste is treated. The Waste-to-Energy facility, which will produce electricity from waste, will also be developed. A new Waste Management Plan will be drawn up by the end of this year.
Schemes related to packaging and electronic waste will also be widened, and efforts will be made to address the separation of waste by the commercial sector.
The infrastructure related to the bottle return scheme will be put in place, including the actual container return machines.
19:59 - Low Carbon Development Strategy to be done by end of this year
The Low Carbon Development Strategy, aimed at reducing emissions, will be finalised by the end of this year. The strategy explores cleaner energy and recommends action on the use of cleaner transport modes and a more environmentally friendly and holistic waste management systems.
There will be an educational campaign on climate change and its consequences, and on how each and every one of us can do our part.
The Malta Stock Exchange will be issuing an attractive package of Green Bonds that can be used to finance projects that promote renewable energy and reduce emissions.
19:55 - We're halfway though
We are around halfway through Scicluna's 114-page speech, as the Finance Minister segways into the subject of the environment.
Most of the government bench, pictured behind Scicluna is listening tentatively of following the Finance Minister's speech. Backbencher Manuel Mallia meanwhile can be seen just in-shot browsing on his phone.
The synomymous table-banging has also stopped in the last 20 or so minute, making for a much quieter Parliamentary house as Scicluna continues talking.
19:53 - Water saving kits to be handed out to public again
Work will continue on the building of five reservoirs in the south of Malta, which will produce tertiary level water. Other projects that will continue during 2021 will be the reverse osmosis plant in Gozo and the tunnel that will link the Pembroke plant to the reservoirs at Ta' Qali.
The government will also carry on with its improvement of the water distribution system coupled with the generation of more water via reverse osmosis plants.
Water saving kits will be handed out to residents, while the national campaign on water conservation will continue in 2021. A plan leading to an overhaul of the drainage system will start next year too.
19:51 - Pitkalija and Pixkerija sales to be tax-free
Moving onto agriculture, Scicluna announces that next year, the government will be giving grants to farmers and fishermen, equivalent to the amount paid in taxes on products sold at the pitkalija (open market) and fishery.
The government will again seek to encourage young people take up a job in farming. The Anti-microbe Resistance Strategy will be implemented to improve bio-security on farms. Work on centres for agriculture, aquaculture and viticulture will continue. The pitkalija will also be modernised.
Funds are being allocated for a scheme aimed to help pig breeders modernise their facilities and another scheme to help fishermen restore their traditional boats built before 2007.
The metering process at boreholes will also be upgraded so as to provide a better scrutiny on water consumption.
19:48 - Fast ferry included in this year's budget, fourth ferry to be acquired permanently
One of the main projects that has been mentioned over the years has been the Fast Ferry project. Despite the controversy it has faced, resulting in its postponement, the government plans to have it introduced in this budget.
Additionally, the government is promising that the fourth Gozo ferry will be kept on a permanent basis, thanks to Public Service Obligation offers, complimented with the introduction of the new bus service X300.
19:45 - Projects for Gozo: restoration at Blue Lagoon, new underwater cultural museum, VR project
Scicluna reels through a number of projects set out for Gozo.
Various statues and niches will be facing restoration woks and mosaic murals are to be installed in tourist areas.
Infrastructural work around the Blue Lagoon area in Comino is also expected.
The smart parking project will be further expanded to more car parks and roads around Gozo, while work at home for the elderly at Ġużeppi House in Għajnsielem will continue.
The construction of the Aquatic Centre will also continue, incorporating the restoration and addition of more sports facilities in the Sports Palace. Even the horse track in Tax-Xħajma will be seeing an upgrade in its technical infrastructure.
The government will also be conducting studies necessary to eventually implement the underwater cultural museum, which should be at first for the Maltese Islands. A Virtual Reality project will also take place inside the Ċittadella so that visitors can experience its history and culture throughout interactive means.
In relation to Eco-Gozo, the first phase of a pilot project for renewable energy generation from cow manure and organic material will be initiated, while of a number of valleys will be improved through reconstruction of rubble walls and afforestation.
19:41 - Bernard Grech looks on
Bernard Grech has barely had time to get used to his bright green chair in Parliament, but only weeks after his election he finds himself leading a full Opposition bench in Parliament's most important appointment.
He's pictured looking intently at Scicluna by our able photographer Mike Camilleri below.
19:40 - Stimulating Gozo's Economy
The government is promising to continue providing the necessary stimuli in the coming years to continue the economic performance Gozo has experienced, which has led to greater recorded economic growth and a fall in unemployment., Scicluna said.
Through further investments in a research centre and a place where pilot high-tech projects can be launched, the government is committed to see that Gozo diversify its economic activity and reduce its dependence on the public and tourism sectors.
All the while, ensuring that Gozo remains a green island through projects that complement the vision of a sustainable environment.
19:38 - Restarting tourism
In the coming weeks, the government will be launching an updated strategy for the development of our tourism based on the principles of a new start-up of our tourism industry as well as on a more sustainable and competitive foundation which aim for more quality.
This strategy should lead us to the year 2030.
With regards to moving towards a 'Net Zero Carbon Neutral' the government has started working on a long-term implementation plan so that the tourism industry can switch its operations to 'net zero carbon neutral.'
The government's vision involves every small or large tourist establishment in Malta to start generating enough energy from clear sources, while reducing consumption through investment in innovative technologies.
19:34 - Air Malta submits application for State Aid
Air Malta, hard-hit by the pandemic, has submitted European Commission a request to be approved for state aid to the company, Scicluna said.
19:33 - Consumer protection and the maritime industry
Consumers will continue to be better protected via the enhancement of national laboratory facilities to test the quality of medicines. The government will work to ease the process via which consumers seek redress, while an e-Enforcement unit will be set up.
Meanwhile, the government will attempt to see that the success achieved in the maritime industry will be repeated in the aviation sector. Laws have been amended to attract more operators. A Stakeholders Forum, which includes representatives from the aviation sector, will be launching an aviation policy.
19:32 - VAT and online sales
To help small operators and the self-employed the VAT exempt threshold will rise from €20,000 to €30,000. Businesses will be assisted to increase their online sales.
19:30 - Going digital
A digital strategy will be drawn up in cooperation with the Digital Economy Think Tank. Investment in cyber security will also increase. The government will also focus on new technology such as virtual reality, augmented reality, immersive technology, 3D printing, and quantum and high performance computing. Artificial Intelligence projects will continue next year in the education, health and transport sectors.
The government will seek to attract companies involved in esports and video game development, while offering students the possibility of developing their skills in the sector. It will continue to sustain sectors such as gaming and blockchain. Workers will be assisted to "upskill" or "reskill". Malta will also be made more attractive to start-up companies.
19:27 - Malta to receive €120 million in European funds for Covid-19 recovery
The government will be allocating €120 million it will receive from the ReactEU programme through European funds to sustain jobs which were adversely hit by the pandemic.
The government will also be drawing up a plan costing €220 million in grants to be made available in the environment and climate change sectors, and the digital economy.
19:25 - Covid-19 Wage Supplement scheme to continue
As was already announced, the Covid wage supplement has saved 100,000 jobs, while more than 20,000 companies have been financially assisted. The government is continuously adapting to the situation and taking decisions according to the needs.
The supplement will be extended to March 2021. Now that the government has more information on how this measure is being implemented, it is in a position to modify it to assist sectors which need financial aid more than others. This measure will cost around €40 million every month.
19:23 - Economic growth and investment must continue in a sustainable manner
Moving onto economic measures, Scicluna explained how economic growth will remain the basis on which the government will strengthen pensions, reduce poverty, spend more on health and raise the standard of education.
The pandemic experience has led the government to give more attention to improve the quality of life. Private and public economic activity must be founded on good governance, more attention to the environment - with the aim of eliminating use of carbon by 2050 - and the need of innovation through an improved use of digital technology.
To remain competitive, the country must continue to invest in infrastructure, in the widest sense of the word. A sustainable economy must be built on a green and digital economy, he said.
19:17 - Private pensions and property purchases
With the aim of further incentivising third pillar pensions, the amount that is exempted from tax is being increased by €1,000 to €3,000.
When it comes to property, schemes for first and second time buyers as well as on the purchase on property in Urban Conservation Areas and restoration schemes are being continued.
In the case of the First Time Buyers Scheme, the amount that is exempt from Stamp Duty is being increased from €175,000 to €200,000.
The government had previously lowered stamp duty from 5% to 1.5% on the first €400,000 when purchasing a property, and from 8% to 5% when selling. This will continue for promises of sale signed by 31 March 2021 which lead to a contract signed by the end of next year.
In the case of property donated by parents to their children for residential purposes, the amount exempt from tax is being increased from €200,000 to €250,000. The remaining amount will be taxed at 3.5%.
19:13 - Free bus rides and government bonds
The free Tallinja card will be given to anyone from the age of 70 upwards. Previously, it was given to people over the age of 75. 19,000 people are set to benefit from this measure.
The government will again issue the 62+ Savings Bonds, which have a higher interest return rate than bonds offered by commercial entities. Over the past four years, 27,500 pensioners invested over €400 million in such bonds. It is expected over 6,000 pensioners will invest in the bonds next year.
19:10 - Carer at Home Allowance to increase, dockyard workers
The Carers Allowance will be increased from €5,291 to €6,000.
Parents who stop working to look after their disabled children will from next year receive a benefit of €300.
Meanwhile, as with previous budgets, €9 million is being allocated to address past injustices.
Compensation will also be given to former dock workers or their heirs who suffered from asbestos related illnesses. A documentary on this subject aired on TVM last month (below), exposing how workers had been forced to work through sordid conditions, which eventually came to the detriment of their own health.
19:07 - Increases for the elderly who do not qualify for pensions
Elderly persons who did not qualify for a pension because they stopped working at some point in their lives and did not pay enough Social Security contributions will see their yearly €200 bonus topped up by another €50, for a total of €250 per year. Those who paid NI for more than five years will see their bonus increased to €350. 11,000 people are set to benefit from this measure.
Elderly people living in care homes will continue receiving the €300 (over 75) and €350 (over 80) yearly bonus.
Meanwhile, in a separate measure, through legal amendments, the surviving partner in a Civil Union or Cohabitations will also be recognised as widowers.
Scicluna address Parliament (Photo: Mike Camilleri)
19:05 - Supplementary Help to increase as well
The Supplementary Help for couples and people who live by themselves with low income will be increasing by anywhere between €70 and €108 in accordance with the person or couple's income.
It's a measure which is expected to affect 29,000 people.
Meanwhile, the €150 additional supplement which was being given to people who are over 65 years old who were at risk of poverty will now be paid to everyone over that age who qualifies for Supplementary Help.
19:03 - Pensions to increase by €5 per week
Apart from the €1.75 COLA increase, pensioners will be given an additional €3.25 per week, meaning that they will benefit from a €5 weekly increase.
This translates into a €260 increase for people on a retirement, invalidity and non-contributory pensions. 93,000 pensioners are set to receive the increase.
In order to ensure that these increases are not lost to tax, the taxable ceiling on pensions is being raised to €14,058.
Scicluna here noted that, excluding the COLA, the increases to pensions in this legislature now stands at €11.25 per week - which is over the €8 per week increase promised in Labour's electoral manifesto.
19:00 - €1,000 for couples who adopt local children
In measures related to children, the Foster Care Allowance is being increased by €530 a year, for a total of €5,720 per year.
Meanwhile, as from next year, couples who adopt locally will benefit from a grant of €1,000, with Scicluna saying that this is expected to help alleviate some of the expenses related to the adoption process.
18:59 - Children's allowance to be increased again; InWork Benefit threshold increases
The Children's Allowance will, for another year, increase as well.
For families whose income does not exceed €25,318, the allowance will increase by €70 per child, while it will increase by €50 for those families whose income does exceed that threshold.
It's a measure which is expected to cost the government an additional €3 million.
The thresholds of the InWork benefit are being extended. The threshold for couples where both adults work is being increased to €35,000.
For working single parents, the threshold is being increased to €23,000. For couples where only one adult works, the threshold is being increased to €26,000.
18:57 - Another round of vouchers confirmed
In what is basically a confirmation of what the Prime Minister already announced last Sunday, Scicluna says that the economic stimulus vouchers which were a key Covid-19 recovery measures will make a return.
The €100 this time will be split 60-40 between restaurants and accommodation, and retail and services respectively. The first round of vouchers saw an 80-20 split in favour of restaurants and accommodation.
Scicluna said that they will be sent out to everyone over 16 years of age, and will cost the government €50 million.
He said that more details will be released later down the line.
18:55 - Another day of leave for everyone, Tax refund cheques to be handed out again
Much like previous budgets, workers will be on the receiving end of an additional day of vacation leave.
Scicluna said that this is in order to make up for public holidays which end up in the weekend, and which were taken from workers under previous administrations.
Tax refund cheques will be sent out to all workers once again, and this time workers will be getting more money out of them.
Scicluna said that the bracket now stands between €45 and €95, with those who have a lower income receiving more money from the refund.
It’s a measure which 218,000 people will benefit from, and which will cost the government €16 million - €5 million more than the last round.
18:54 - COLA up by €1.75 per week
The Cost of Living Adjustment will be of €1.75 per week in 2021 – something which Scicluna said reflects the low inflation that Malta has had in the last 12 months.
The increase is in the same ball-park as increases in previous years, and just under €0.60 less than last year’s increase.
The increase will be granted to all workers, pensioners, and those on social benefits. Students will see their stipends increase on a pro-rata basis.
18:53 - GDP to contract by 7.4% in 2020, but recover in 2021
Moving onto the economic forecasts, Scicluna says that the GDP this year is expected to contract by 7.4% in real terms. This will however be recovered in 2021, with a growth of 5% in real terms and 6.4% in nominal terms.
This will mainly be powered by a 7.5% increase in investment, and 3.7% increase in private consumption.
Scicluna says that with these forecasts, a 2.3% increase in employment is expected, while the level of of unemployment is expected to remain at around 4%. Inflation is expected to be around 1.3%.
In terms of public finances, the deficit is forecasted to go down to 5.9% of the GDP, while the public debt increases to 58.6% of the GDP.
18:50 - Public debt up to 55%
He says that given that the government has registered a surplus for four years in a row, it can spend more than it receives in the coming year, as is necessary, in order to safeguard families, jobs, and businesses.
He says that the country is this year expected to register a deficit of 9.4% of the GDP, which will take the public debt up to 55%, which takes it back to 2016 levels.
18:46 - Malta with the lowest unemployment rate in the Euro Area
As a pre-cursor to the measures itself, he begins to delve into the country’s economic situation.
He notes that while in the Euro Area’s GDP had fallen by 9% as a result of the Covid-19 pandemic and the adjoining economic crisis, in Malta it fell by 7.7%.
At 4.1%, Malta’s unemployment rate is the lowest in the Euro Area as of August, with the average rate in Europe being 8.1%. Measures such as the Covid-19 wage supplement, which the Prime Minister already announced last Sunday will be extended tonight, were integral to this, Scicluna says.
18:44 - Four economic packages, four energy saving bulbs
He said that the government is showing that it is not a sailor of calm waters, more so it has proved that it is a government which has thought in anticipation of storms.
He throws in a quip targeted at the Opposition, noting how in times of austerity, all the PN government had done was give out a few energy-saving bulbs while the government had released four economic packages.
He noted that this crisis has hit the country in a time when the government has reduced the national debt by half when compared to 2013, and when families and businesses have double the amount of money deposited in the bank when compared with 2013.
He speaks of his pride at having worked as Finance Minister to get to this point, and adds that it would have been easier to turn to austerity measures in a time like this – but that the government had instead remained focused on the vision it came up with when it was in Opposition.
18:39 - 'We have proven where the surplus is'
We are up and running.
Scicluna starts his speech by saying that the practice of saving money for when it is needed has come to fruit today.
“To those who sarcastically ask where the surplus is, I think that in the last few months we have proven where the surplus is”, Scicluna says.
He says that in 2009, the government of the day had increased utility bills, and that today the government – when facing a much bigger crisis – had paid €800 per month in wages for almost half of the private sector for eight months.
18:33 - Ready, set...
Papers are currently being laid in the House, and we are expecting Minister Scicluna to get us going any minute now.
18:29 - Could this be Edward Scicluna's last budget?
Much has been said in the past days of a potentially upcoming reshuffle within Cabinet - less than a year after Prime Minister Abela appointed his Cabinet in the first place, and it has been strongly rumoured that Edward Scicluna himself will be one of those making way.
Clyde Caruana - who was sworn-in as an MP half an hour ago - has been touted as his replacement.
Asked about this prospect before entering Parliament this evening, Scicluna simply laughed the question off.
18:22 - What to expect: More vouchers, no taxes
While obviously we're still waiting in anticipation for Scicluna to get going, we do have an indication about what the Budget will include.
Prime Minister Robert Abela has already announced that another round of vouchers is expected, and that the wage supplement scheme will be extended.
Meanwhile, Scicluna himself some weeks ago said that this year's budget will not include any new taxes - despite the fact that Malta's economy has suffered as a result of the Covid-19 pandemic.
18:17 - While you wait...
Parliamentary Questions are now ongoing in the House. In the meantime, while we wait for Scicluna to start his speech, you can have a look at our analysis from a couple of weeks ago on what we can expect from this evening's speech.
18:13 - A commemoration of Frederick Azzopardi
Meanwhile in parliament, with Dalli and Caruana now co-opted, PN MP David Agius has risen to commemorate the memory of Frederick Azzopardi, who passed away over the weekend at the age of 71.
He describes Azzopardi as a 'gentleman' to loud table-banging from across the room.
Prime Minister Robert Abela meanwhile also pays tribute to Azzopardi, saying that his loss is a big one, and passed his sincerest condolences to Azzopardi's family.
Speaker Anglu Farrugia says that Azzopardi was an example of how one can debate a matter but remain civil and respectable. He says that a proper occasion for tribute to Azzopardi will no doubt be found in the future.
18:11 - What others are expecting from this Budget
Before things get going, it's good to take a look at what others have proposed for inclusion in this Budget.
The PN in their pre-budget document called for, amongst many other things, an extension to the wage Supplement until March and for a second set of COVID-19 vouchers to be issued. They proposed a total of 100 ideas spread across five pillars; diversification and innovation, digitalisation, education, a circular green economy, government as governance. You can read more about these measures here.
The Chamber of Commerce meanwhile put forward 130 proposals under the theme 'A Smart Sustainable Land Driving the Wealth and Wellness of Society', which can be viewed in full, here.
18:05 - Clyde Caruana, Miriam Dalli to be co-opted
Clyde Caruana, the Prime Minister's Chief of Staff, and Miriam Dalli, Labour's leading MEP, are going to be co-opted as MPs this evening. They replace former Prime Minister Joseph Muscat and Labour MP Etienne Grech in the House.
17:55 - Welcome to this Live Commentary
Welcome to this live commentary of Budget 2021! We will be with you throughout the evening as Finance Minister Edward Scicluna, who is pictured below with the finished budget document before leaving the Finance Ministry, takes us though the government's economic plan for the coming year.
