The Malta Independent 8 November 2024, Friday
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As it happened: Tax cuts announced as government aims for quality over quantity

Albert Galea Monday, 28 October 2024, 18:24 Last update: about 10 days ago

Finance Minister Clyde Caruana announced the government’s Budget for 2025 in Parliament on Monday evening, with the adjustment of income tax bands – which will lead to a tax cut of up to €675 – being the headline measure.

It wasn’t all as per standard on the day: Caruana’s speech was interrupted barely a page in as activists from Moviment Graffitti unfurled a banner and staged a protest against the rampant over development in Malta.

From then on it was plain sailing for the Finance Minister, in what is now his fourth Budget.  His speech lasted just over two and a quarter hours, and it was one where – besides the key income tax measure – he also said that it’s time for a new economic chapter for Malta.

An economic shift has long been mooted, even by the Prime Minister, but never has it been placed in as uncertain terms as this.

“The future of tomorrow demands a different recipe from the past.  It requires a recipe of quality, not numbers.  That’s why it’s time to close that chapter. It’s a chapter which gave us results, but today, from tomorrow, it is consigned to the past,” he said as he concluded his speech. “The future starts here.”

Follow the minute-by-minute commentary of the Budget speech below.

 

21:50: Before we close off this live-blog, here’s a recap of the key points from Caruana’s speech:

Country must move from quantity to quality, Caruana says

Pensions, children’s allowance to increase

Economic Migration Policy consultation document to be published by end 2024

National Minimum Wage to increase by €8.24 per week to €221.78

More people to benefit from free medicine

Government aiming for carbon-free economy by 2050, seeking quick remedies for traffic

Taxpayers will benefit from tax reduction of up to €675, tax bands widened

Community policing to cover all of the country next year

You can also check out the reactions from constituted bodies and other entities as they come in here.

 

Thank you for following this live commentary, stay tuned to The Malta Independent for more coverage about the Budget in the coming days!


21:05: That brings Caruana’s speech to a close.

It wasn’t one without drama, as Moviment Graffitti activists stormed Parliament with a banner against massive development as Caruana was about to start his speech.

But other than that it went largely as expected: Caruana detailed the government’s keynote measure – an adjustment to the income tax bands which will see people save up to €675 – and also spoke extensively and in no uncertain terms that the time has indeed come for Malta to turn over a new leaf and pursue a new economic model.


21:03: Caruana is set to conclude: he follows the usual government mantras, saying that this is a government that has been there for people and did not “do as others did and crucified people.”

He runs through a list of achievements in the last ten years – complete with celebratory chants from his colleagues on the government’s side of Parliament behind him.

Caruana says through that one cannot take Malta’s economy for granted, as he refers to economic struggles of other European countries, saying that it’s every Finance Minister’s worst fear for Brussels to tell the government to cut certain aid.

“The closest we’ve ever been to this was in the time of others. They were the government of austerity.  This is a government which is a guarantee for peace of mind when it comes to the country’s finances,” he says.

He says that Malta is “an economic miracle” and calls on people to never forget that.

“The future of tomorrow demands a different recipe from the past.  It requires a recipe of quality, not numbers.  That’s why it’s time to close that chapter. It’s a chapter which gave us results, but today, from tomorrow, it is consigned to the past,” he said.

“The future starts here,” he continued.

What does Caruana want to see? A country which offers serenity, a beautiful country, a modern country, a country which offers a better future for our children, a country which offers more opportunities and a better life for youths, a country which offers peace of mind for the elderly.

And finally: “A country of quality.”


20:57: Caruana said that the government will continue to work towards an electoral pledge which will see taxes on women’s sanitary projects removed. After a pilot project, this will happen in the coming year, with the VAT rate on these projects being set at 0%.

This will also apply to medical accessories for women who are recovery from cancer.

On culture, Caruana said that work is set to start on the long-awaited Culture Hub in Marsa, and €2 million has been allocated to support producers of local films – a significant increase and which comes after many gripes over the discrepancy between the incentives given to foreign filmmakers and local filmmakers.

The Public Broadcasting Services will also be getting a new studio on the Malex House site, and restoration will continue at Villa Portelli, Villa Guardamangia, the Inquisitor’s Palace, St Paul’s Catacombs and the Manoel Theatre.


20:52: Caruana also spoke about a myriad of changes and investments – almost all of which have already been announced – in the legal sector.  He said that there are discussions for ethical standards for judicial members to be reflected in the Constitution, which he said he hopes will be supported by all of Parliament.

He moved on to the construction sector, speaking of the work of the Building & Construction Authority (BCA) and the Occupational Health & Safety Authority (OHSA), saying that increased collaboration will allow for more effective enforcement.

The OHSA will also be setting up an office in Gozo in order to offer more immediate service.

A new directive to coordinate enforcement is set to be set up, with officials being given responsibility of particular localities and not on certain classifications of developments (for example, if they were in ODZ or UCA zones).

Through the Lands Authority, a scheme for temporary emphyteusis to be redeemed will also be implemented so that more properties can become freehold.


20:47: Caruana ran through several waste management projects which are already ongoing, and said that on infrastructure it is aimed that projects in Tal-Barrani, Qormi, and Kirkop will be finished.

He also ran through work done by Project Green in the last two years – the subject of a press briefing last week – and said that four new sites of National Importance were added to the Conservation lists.

In the home affairs sector, there are new sectoral agreements on the cards for the Armed Forces of Malta and the Civil Protect Department.  Community Police will be widened to cover the whole country, and Police Patrol and Community Support Officers will be introduced – a project to focus on getting more people on the streets.

The second hub for victims of domestic violence hub, armed with panic alarms, will also be opened in Imtarfa in the coming year. Caruana said that the country must also get to the point that electronic monitoring is introduced for the first time. He said that the logistics are almost in place, and now the laws governing it must go through the necessary processes to be implemented.


20:41: On transport, free public transport will be extended and parking hubs near ferry areas will be built too.

The electric vehicle purchase scheme will be extended – but it will be decreased from €11,000 to €8,000 for new electric cars and up to €2,000 for electric motorcycles.

This being said, customers who have ordered an electric vehicle up till today – 28 October 2024 – will be able to take advantage of the €11,000 grant, even if their cars won’t be registered before the end of the year. Incentives for purchasing pedelecs and e-kickscooters will also be extended.

Electric vehicles and plug-in hybrids with at least 50 km electric range will remain exempt from registration tax and annual road license fees for five years from the first registration date. 

A national strategy promoting cycling as an alternative travel method is being promised – although this is will be the third one in the last six years – together with the implementation of the first phase of the Connections for Safer Active Mobility) project, which includes creating bike paths and pedestrian zones in urban areas.


20:38: On agriculture and food security, a new Food Security Authority will be introduced next year to ensure food safety during crises.

Tax incentives will also encourage producers and sellers to donate products which are almost expired for social needs or sell them at discounted prices. The excise duty on low-alcohol beer produced by small, independent breweries will also be reduced.

As part of having a carbon-free economy by 2050, the government is continuing to support people who invest in renewable energy systems for their residences. This includes photovoltaic panels, battery storage systems, heat pump water heaters and solar water heaters, and funds for the restoration of old wells.

Caruana also spoke about the government’s strategy related to energy, which speaks of the need for the second interconnector, investment in mass energy storage with onshore batteries, national politics for renewable energy and a preliminary consultation exercise to evaluate interest in the market.

Wind energy – be it fixed wind turbines or floating wind turbines – and nearshore solar projects are being considered, Caruana said.


20:31: On Tourism, Caruana is clear: “Tomorrow’s economy requires quality, not quantity.”

He details statistics related to tourism, and says that Malta is directly connected to around 110 airports. The touristic contribution to the economy will surpass €3 billion for the first time this year.

Marketing has meant that traffic has increased from Switzerland by 14%, Scandinavia by 9%, Australia by 2%, and, most significantly, the USA by 22%.  Other long-haul destinations are seeing a collective increase of 20% when compared to last year.

He said that work will continue to improve the service offered though the Skills Pass and noted that Gozo’s unique characteristics must also be protected.


20:27: On the global minimum tax rate – which is set at 15%, Caruana says that Malta has opted to defer the implementation of this EU directive.

The Finance Minister places focus on innovation, start-ups and family businesses, saying that Malta is preparing the infrastructure for a Digital Identity Wallet as a smartphone app, and said that €10 million has been allocated to the newly set up Malta Government Venture Capital Limited for it to invest in new companies.

Budget 2025 will address important challenges through strategic measures that strengthen research, innovation and social inclusion.

Caruana ran through a few private sector investments in the manufacturing sector in Malta – such as ST Microelectronics, GIMAS, and Baxter – and said that there are plans to promote the Crafts Village in Ta’ Qali throughout 2025.

Caruana said that when it comes to financial services, Finance Malta had successfully completed 19 points out of 59 in a strategy focused on this sector, and the government will also introduce legislation concerning Limited Partnerships during 2025 in the hope of promoting this new sector in the country.

Caruana said that the iGaming sector contributes to 7% of the country’s GDP and employs 16,428 people, and the government is committed to focusing on this sector together with e-sports and immersive technologies.


20:21: Moving onto the final chapter of Caruana’s speech, the Finance Minister speaks of the recently announced vision document for 2050 – Vision 2050, which aims to establish the country’s strategic direction in the coming decades based around citizen’s quality of life.

Caruana said this Vision Malta 2050 will address emerging issues such as climate change, technological transformation, demographic shifts, and global market dynamics, positioning Malta as a resilient, competitive, and sustainable nation.

The vision will serve as a plan for the country’s economic, social, and environmental development, focusing on digital innovation, infrastructure, education, healthcare, and sustainability to ensure a higher quality of life for current and future generations.

He said that the plan is for this document to be finished by the end of Q1 of 2025.


20:18: On physical exercise, Caruana says that the government will pay for the first six months of a gym membership for those born in 2005, 2006, and 2007, and also pledged for the government to continue investing in international standard sporting facilities.

He said that work will continue at the National Centre for Motorsports in coordination with the Malta Motorsport Federation, with the title for this land also passing to this federation.  The first structural phase of this project will begin in the coming year.

The Budget will also include mental health initiatives within the community, as the government will widen programmes for mental health first aid and a pilot project open to local councils for aid to be given within the community.  These initiatives will cost €4.5 million and result in some 90,000 interventions, Caruana says.


20:14: On the Labour Market, the government is planning to publish a Policy for Economic Migration by the end of the year.

Jobsplus will also be strengthening mentoring programmes, and the €150 grant for individuals in atypical work hours will continue. New laws will regulate digital platform workers, improve work-life balance, and establish equal pay for equal work starting January 1, 2025. 

On health, there are €140 million in European funding which will be spent to improve health infrastructure and purchase new medical equipment.

The coming months will see tenders issued for the expansion of the Emergency Department, widening of intensive care services, and creation of an Acute Psychiatric Centre, and €14 million is also going to be allocated to reduce the waiting list for certain operations by involving the private sector.  This will see 5,000 more operations be done in the coming year.

The recommendations of the National Strategy for Diabetes 2024-2030 will also be financed, and priority will be given to physical exercise and sports in general.


20:10: The next chapter is titled ‘Continuing to invest in people’ and the first area of focus is on education.

The key investment here, he said, is the renewal of a sectoral agreement for educations covering between 2023 and 2027.  Support for families with children in private schools will increase through more tax deductions on school fees, raising amounts to €3,500 for kindergarten, €4,600 for primary, and €6,500 for secondary education.

The government has also committed to modernising over 100 schools over the next 13 years, with eight projects financed annually to prioritise sustainability, including new schools in Gozo.


20:07: On the country’s fiscal situation, Caruana emphasised on “discipline” and “prudence.”

When it comes to taxes, in the first half of 2024, €300 million in tax arrears was collected, with over 1,200 payment agreements finalised with taxpayers. Additionally, the timely submission rate of tax forms increased from 73% in 2023 to 93% in 2024, Caruana said.

He observed that the country’s deficit – and Malta is currently subject to an Excessive Deficit Procedure let’s not forget – was projected to stand at 4.4% - but the country performed better than expected and today is has dipped to 4%.

Caruana said that the aim is to reduce this to 3.5% in 2025 and 3% in 2026, which will be enough for the Excessive Deficit Procedure to be removed.

The country’s debt-to-GDP ratio meanwhile today stands at 49.5%, Caruana said, despite the Opposition’s scaremongering otherwise.  This is a full ten percentage points beneath the 60% threshold outlined in the Maastricht Treaty.


20:03: On social accommodation, there isn’t much new.  Caruana says 465 units were allocated to families in the past year, and projects were inaugurated in Msida, Siggiewi, Cospicua, Qrendi, Zebbug, and Luqa and work is also ongoing in several other projects.

The “Rent to Assist” scheme will continue, with €10 million allocated to this. Additionally, the maximum annual income limit for beneficiaries will increase by €1,000, and €2 million will be allocated for the installation of new lifts.

On affordable accommodation, Caruana observed that 85% of Maltese are owners of their homes, and that by investing €52 million between 2017 and 2023 the government had helped 1,391 purchase property through schemes like the Deposit Guarantee, Equity Sharing, Social Loan, New Hope u Sir Sid Darek.  Caruana said that the government is committed to continuing these schemes.

The First Time Buyers scheme will continue, as will the Grant on First Residence and the Second Time Buyers scheme.


19:58: On the voluntary sector, the government has allocated almost €25 million to more than 50 public social partnerships with several voluntary organisations who work in social sectors.  This does not include other assistance schemes to voluntary organisations.

A one-stop-shop will also be opened in the south of Malta to serve as the first centre for training, resources and research for the voluntary sector.

Companies who donate to voluntary organisations involved in social sectors, the environment, and animal rights will receive a tax credit of up to €500.


19:56: Past injustices is a topic which has always been a part of the Budget, and this year is no different.

2025 will be the seventh and final year in the scheme for former members of the police corps who found employment in the public sector, Caruana says.

There will however be three new schemes from which 2,600 people will benefit.

The first concerns former employees of Telemalta Corporation who were engaged between January 1978 and January 15, 1979, and due to changes in the corporation's policy, were unable to qualify for a pension scheme similar to that of public service employees in effect until early 1979.

The second is for former employees of Malta Drydocks and Malta Shipbuilding who were arbitrarily transferred in 2003 to Industrial Projects and Services Ltd, resulting in a loss of income, and the last is for former employees of the Gas Board who were assimilated into Enemalta Corporation.


19:53: Caruana said that elderly homes in Zejtun, Mosta and Imtarfa will be subject to renovations and a Centre for Active Ageing will open in Senglea to complement other similar centres across the country.

Investment will also continue at St Vincent de Paul, with a Renal Unit in the residence, a new MRI machine, and a new building for intermediary care together with two additional work and a palliative care ward.

The Carer at Home grant will also increase by €500 to €8,500 per year.


19:50: There are several initiatives related to the disability sector.

Disability Assistance and Severe Disability Assistance will both increase by €3.49 per week, with Additional Severe Disability Assistance to increase by €7.42 per week.  The allowance for families with children with disabilities will also increase by €5 per week.

A new measure will cater for situations where one person is taking care of two high or medium dependency family members. This will see them receive 150% of the benefits that they are entitled for.

The Carers Grant will increase by €8.24 in parallel with the national minimum wage, and it will also be paid to parents who do not work in order to take care of children under the age of 16 who have a severe condition which requires constant and continuous care.

Aid for specialised therapy for children with disabilities will increase from €500 to €750, and a pilot project will be launched in the centre of Malta which will see a night service for people with severe disabilities be introduced.


19:43: There will be credits for those who beat drug addiction and re-enter the working world.  If these people successfully finish a drug rehabilitation programme and find fixed employment they will qualify for two years of accredited social security contributions.


19:40: The additional mechanism against the cost of living for families or persons with low or median income will continue, with families receiving anywhere between €100 and €1,500 per year.

The first payment will be in December and the second will be mid-way through 2025.  Around €48 million will be distributed to around 100,000 families with almost 200,000 dependents.

There will be a higher rate in the Supplementary Allowance – an allowance which has seen fewer beneficiaries in recent years because family income has substantially increased in recent years, thereby significantly reducing dependency on social benefits.

Social dependence decreased by 60% in the last decade, Caruana says. Despite this, there will be a reform in social aid which is given to the family breadwinner when they cannot work due to health reasons or because a child is under their care.  This assistance is tied to a means test, Caruana says.

Social Medical Aid will be created as a new benefit specifically for people who suffer from illnesses which render them unable to work. Medical evaluation will be the same as those who receive an invalidity pension, Caruana explained.

Elderly people who turn 75 will automatically be eligible for a Pink Card which will allow them automatic access to free medicine without needing to satisfy a means test.


19:33: From one end to another: Caruana speaks now about children and says that for the third year running the Children’s Allowance will increase by €250 per child irrespective of family income. This exceeds what was promised in the Labour Party’s general election manifesto, Caruana observes.

This measure is worth €16.5 million and will affect around 42,000 families with 63,000 children.

The in-work benefit will improve, Caruana says, and the special allowance for those who continue their education after the obligatory age will also continue, with around 10,500 families set to receive another €500 payment this month.

The bonus for birth or adoptions will see a new category, with families getting €1,500 for welcoming a third child or more into their family.  The marriage grant will increase by almost €170 to a total of €500 per person, so €1,000 per couple.


19:29: Moving on to pensions: Caruana says that pensions will increase by €8 per week, equivalent to €416 in a year – which is inclusive of the COLA.  100,000 pensioners will benefit from this increase.

Pensioners have enjoyed an increase of €70 per week in their pensions in the last decade, Caruana highlights, and equivalent to €3,583 in a single year.

The pensions for those born before 1962 will also be adjusted again, and around 7,500 widow pensioners will see an increase of around €3 per week in their own pensions.

The amount of a service pension that is not considered in social security pensions will also increase by another €200 reaching the sum of €3,666, and the bonus for those not qualifying for a pension will also change to reflect the number of years of NI that was paid.

The bonus will range from €550 for those who only paid one year and rise up to €1,000 for those who have paid up to nine years.  16,000 people will benefit from this.


19:24: Caruana now speaks about Occupational Pensions, saying that the government wants to introduce “a culture of saving” and ensure a more adequate pension for workers in the future.

He said that the time to encourage Occupational Pension Plans, with the final line of thinking being that every worker has the opportunity to invest in an occupational pension plan.

Employers will not have an obligation to contribute, Caruana says, and the employee may opt out but the government is committing that in the case of its own workers it will match contributions up to a maximum of €100 per month per person.

Those who already have a private pension plan may enter the occupational plan and enjoy the same fiscal benefits, Caruan says.  The next step is for details to be concluded with the sectors concerned so that by mid-way through 2025 the schemes can be introduced.


19:19: Caruana also says that the tax refund cheque – which is worth between €60 and €140 – will return for all workers who make less than €60,000 per year, and the children’s allowance will also increase.

With all of this, he says, a family with two children and an average salary will have €1,800 more in their pockets.   There are over 20,000 families who fit into this bracket.

Furthermore, in the case of pensioners who choose to continue working, 80% of their pensions will now be non-taxable – up from 60% last year.


19:16: The income tax reduction will be costing the government €140 million, Caruana says.

Those on the single computation – which is around 70% of taxpayers – will see the tax-free threshold increase from €9,100 to €12,000, which means that the latter figure is the one which is not taxable. The 15% tax rate will apply between €12,001 and €16,000 and between €16,001 and €60,000 will be 25%.

It means that anybody working under this computation will see a reduction of anywhere between €435 and €675 per year. All those who have an income of over €19,500 will benefit from the maximum tax reduction - €675 per year.

There is a similar adjustment for those on the married computation – around 14% of taxpayers.  They will see a reduction of between €345 and €645 per year.  All those with an income of over €28,700 per year will receive the maximum deduction.

Likewise for those on the parents computation – the remaining 16% of taxpayers: they will save between €375 and €650 per year. All those with an income of over €21,200 per year will receive the maximum deduction.


19:11: Caruana says that this year’s Cost of Living Allowance (COLA) will be of €5.24 per week.

Stipends will increase on a pro-rate basis in line with this, and the minimum wage will increase next year by €8.24 per week therefore rising to a total of €221.78 per week – a minimum wage which will not be taxed, Caruana reminds.

“This is a budget which gives to the people,” Caruana says as he reduces the keynote measure: the reduction in income tax.


19:09: Caruana announces that the government will – for the fourth consecutive year – be financing subsidies on the price of energy, fuel, cereals, wheat, and animal feed. This is despite European Commission pressure to do away with this, but Caruana says that the government believes that it shouldn’t be the people to suffer for what is happening around us.

Caruana says that the Maltese economy is set to grow by 4.3% in real terms and 7% in nominal terms with the job market growing by 4.6% in 2024 and 4.1% in 2025. Inflation is also expected to decrease to 2.5% in 2024 and 2.1% in 2025.


19:06: Caruana speaks about the country’s economy, and first compares with the situation in Europe.  He says that despite all the challenges around the world and Malta’s insularity, Malta experienced the highest economic growth in the European Union in 2023.

Economic growth was measured at 7.5% - significantly higher than the 0.4% registered across the EU.  The first half of 2024 saw a real GDP growth of 5.9% and a nominal growth of 9.6% which was primarily pushed by domestic demand.

In the labour market, Caruana harked back to the old slogan of ‘Labour Won’t Work’, saying that today the country is set to be at the top of the table when it comes to participation in the labour market.

“This is all a result of the prudent decisions that the government took in every difficult moment that the world faced,” Caruana says.


19:02: The same must happen in tourism, where the government is targeting more spending rather than higher volume of tourists.  The assistance to investors must also follow this quality-based pattern.

“In the past an investor coming and saying he will employ 200 people was a solution to a problem.  Today it almost creates a problem if the skill level of the workers is low.  That is the state of our economic development,” Caruana says.

“That’s why we need to align with the needs of the economy,” he continues.

He says that the government is understanding that the people are now seeking more control, order, and regulation on the labour market.

“This government took care of your pocket in tough times. This government took care of the vulnerable with social measures.  The time has come to turn the page so that this country can look towards quality and not quantity,” Caruana says as he closes his introduction.


18:59: The arrival of artificial intelligence will bring a new era similar to what was seen in the 1990s when the internet arrived.  “This is not the future, but the present,” he says.

“If our country wants to move towards quality, we need the best Maltese and Gozitans minds working in these sectors,” he says.

“We cannot be afraid of the future and we cannot fall into the trap of protectionism.  Our youths are more ready than we think for this future,” he says.


18:57: The aim now must not just be to generate wealth, but to also create a society which lives a better and more serene life, Caruana says.

He says that this challenge will be addressed in the coming weeks with a new policy on economic migration, one which, he continues, will be based on respect towards all workers but more so on the needs of the country and the people, and nobody else.

Areas like infrastructure, education, tourism and new foreign direct investment must be in sync with these changes, and if this is not done that the country’s reputation will be lost because investors rely on there being a single and stable direction.


18:53: This, however, Caruana says, has led to new challenges which are now leaving an impact on the quality of life of people.

“The private sector’s access to foreign workers from third countries after the pandemic has created inefficiencies in the economy, and today we can even call it a dependency,” he says.

“This has led to quantity rather than quality,” he continues and says that today’s challenges are because the country’s infrastructure is not keeping up with a growing country and a growing economy.

It’s not a matter of nationality, he says, but a matter of skills – but it must also be kept in mind that these are human beings and a Socialist government can never close its eyes to any abuse.


18:51: The protest has been cleared up and that has allowed Caruana to speak again.  He starts his speech from scratch – not that he’d gotten very far. 

He speaks about the challenges that major European countries are facing, and produces A3 printouts of media reporting of Budgets – and service cuts and tax increases – in the UK, France, Italy, and Germany.

That stunt included the minister reading a media headline in surprisingly good German.  He says that in Malta, the government was there for the people and for businesses and today the country is going to reap the fruit of that support.


18:47: The protest was by NGO Moviment Graffitti.  On its Facebook page, the NGO said that Malta has been taken over by strong interests which will result in the destruction of the country.  They referred to a recently announced proposal for a local plan change which will come to the benefit of a mega-development on the Villa Rosa site in St Julian’s.

A video shared by the NGO shows activists unfurling a banner and others throwing papers down into the plenary, with Parliament’s security officials trying to stop the activists.


18:40: This measure is being implemented within the context of the country’s deficit being managed to an extent that it is coming down quicker than what is required by the European Commission, Caruana says.

He says that pensions will again be increasing and that the country will continue to be protected from higher energy and fuel prices.  Malta is the only country in Europe doing this, Caruana says.

However – and this is dramatic – his speech is interrupted by chants from the stranger’s gallery. “Tizfnu ghad-daqqa ta l-izvillapaturi,” rings across the Parliamentary chambers and Speaker Anglu Farrugia immediately suspends the sitting.


18:37: We are underway. Caruana begins his speech, and says that this will be a “positive” Budget which strengthens social measures and offers a future with a strong economy for the country.

He says that we are now used to hearing that the Budget will have no tax increases or new taxes, but this year he is proud to say that not just that, but it will be a Budget which reduces taxes.

An auspicious start, showing that the income tax reduction is indeed the keynote measure for today.


18:31: We’ve got a number of press photos, including Caruana meeting with the President of the Republic Myriam Spiteri Debono earlier today and presenting her with the Budget.  This is Spiteri Debono’s first Budget as President.

Parliamentary Questions meanwhile have come to an end, so we may expect Caruana to kick his speech off any moment now.


18:27: We already know that the main measure of this evening’s Budget will be an income tax reduction, with Prime Minister Robert Abela saying that the reduction is going to be a record one.  We also know that this year’s Cost of Living Allowance will be of around €5 per week.

Caruana will no doubt be elaborating on these points and plenty more in the coming minutes. 


18:20: Good evening and welcome to our live coverage of this year’s Budget speech, where the government will lay out its economic vision for 2025.

Right now the government is answering Parliamentary Questions, but Caruana is expected to take the mantle for his speech at around 18:30.

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