21:00 – Snore. Full summary out now

Thanks for being with us throughout the night. The second half of this budget speech yielded very little substance, so we switched to writing the full recap, which you can find here.

20:45 – This budget should have ended 45 mins ago

No new announcements in a while.

20:45 – Electric charging points

Government is supposedly working to establish 1,200 electric vehicle charging points across Malta and Gozo. So far, they have invested in 372 public charging points spread across 186 locations. Additionally, there’s an ongoing project to create a national digital platform that will integrate all public charging points into a single system, providing a more comprehensive and efficient service for electric vehicle users.

20:35 – Energy efficiency measures

Malta is introducing various schemes to promote renewable energy and energy efficiency, including solar panels, heat pump water heaters, and incentives for restoring old homes. Private investors can bid for the development of large renewable energy projects. Free energy audits will help small and medium-sized businesses become more energy-efficient.

20:10 – Aircraft Leasing

The government is actively working to enhance financial infrastructure to support aircraft leasing in the coming months.

No concrete details given so everything remains in the air

20:05 – International Taxation

Malta is following global standards such as the Two Pillar Solution proposed by the OECD. Pillar 1 addresses the allocation of taxing rights among countries, while Pillar 2 focuses on establishing a global minimum tax rate of 15% for large multinational companies. Malta has decided not to apply any of the Pillar 2 rules in 2024, ensuring that tax rates and the full imputation system remain unchanged. The country will continue to offer incentives, like grants and Qualified Refundable Tax Credits, in line with international rules to remain competitive and responsive to global developments.

19:55 – Health Services

In 2024, the modernization of Health Centres in Mosta, Floriana, and Cospicua should continue, opening new clinics. This is being done to introduce and expand various services, including blood transfusion at the primary care level. Another service that will be extended is the Remote Patient Monitoring for those with Type 1 Diabetes. Additionally, Mater Dei Hospital will have a dedicated team of specialists for managing cancer-related complications, and we will continue to expand the Nurse Navigator service.

19:50 – Stipend increase

Stipends will be increased on a pro-rata basis, resulting in an annual raise of €64.

19:45 – Gozo, An island of villages

Government has announced its intention to dedicate strategies meant to ensure that Gozo remains a sustainable island of interconnected villages.

On an unrelated note, the government is actively working on the development of a Gozo Airfield.

19:40 – First-time buyer scheme extended

The current scheme provides a €1,000 grant per year for ten years to anyone who purchases their first home from the year 2022 onwards. In the first year, approximately 2,600 individuals or couples benefited from this scheme, which saw an initial investment of around €3 million. This allocation is set to increase to €5 million, with €2.1 million in the year 2024.

19:40 – Accomodation for Gozitan students in Malta

Gozitan students will continue to receive support through accommodation provided in Malta. The structural work at Villa Lauri in Birkirkara is now complete, and throughout the year, finishing touches will be added, including the installation of furniture, appliances, and lifts. Additionally, the government has embarked on another student accommodation project at Dar Fatima in Gwardamanġa.

19:35 – Offshore renewables mentioned, no detail once again

Public consultation submissions about offshore renewable energy development are currently under analysis by the Energy and Water Agency.

Interconnect Malta is also progressing with technical, financial, and legislative studies to expedite the development of these projects. The goal is to publish the Pre-Qualification Questionnaire (PQQ) within the first months of the year.

Strong interest is claimed in projects related to clean energy generation.

19:30 – Second Interconnector

Through a second Interconnector between Malta and Sicily, the government aims to enhance the stability of our network and reduce carbon emissions while also increasing the country’s capacity to meet the growing demand for electricity. It states it is a step towards a more sustainable and resilient energy infrastructure for our nation.

19:25 – Who else is moving to San Vinċenz?

Government will spend €700,000 on a Therapeutic Petting Farm and Recreation Centre within the San Vinċenz Residence.

19:20 – Children’s allowance to increase by €250/year

Grants for first and second-born children also see increases to €500 and €1000 respectively.

19:15 – Workers encouraged to work past pension age

Encouraging people to work beyond their pension age benefits the state by increasing tax revenue, reducing the burden on social services, promoting economic growth, ensuring pension system sustainability, retaining valuable skills, and enhancing the country’s…

guess.

that’s right, GDP.

19:10 – What is an Excessive Deficit Procedure?

The Excessive Deficit Procedure (EDP) is a process in the European Union to monitor and address excessive budget deficits and public debt in member states. It involves stages of notification, investigation, recommendations, Council decisions, and ongoing monitoring to ensure compliance with fiscal rules. It’s a mechanism to maintain fiscal discipline and stability within the EU.

In extreme cases, if a member state consistently fails to address its excessive deficit or debt issues and does not comply with the EDP recommendations, the EU can take more direct control. This can involve increased oversight, mandatory corrective measures, and, in exceptional circumstances, financial penalties or sanctions imposed on the non-compliant member state. The goal is to ensure adherence to agreed-upon fiscal rules and maintain stability in the Eurozone and the EU as a whole.

19:05 – Public debt will keep ballooning

The public debt as a proportion of the GDP, is expected to be around 52.8% in 2023 and is projected to increase to 55.3% in 2024.

Though proclaiming an attitude of fiscal responsibility, the only goal being made public is that of keeping below 60.0%, that is, Excessive Deficit Procedure territory.

19:00 – Economic growth

The Maltese economy is expected to maintain its positive momentum for the remainder of this year, with a projected real growth rate of 4.1%.

GDP per capita is not mentioned throughout the document.

18:55 – Germany’s been mentioned more often than Malta

Having started with enamoured and particularly laboured comparisons to Germany, Minister Caruana now tells us the Maltese middle class would have collapsed if Malta took a similar approach to energy subsidies.

18:50 – Energy subsidies to persist

Malta is currently spending hundreds of millions per year to subsidise the prices of electricity and fuel, the government acting as a buffer for locals from the impacts of higher energy prices.

Although the EU Commission has repeatedly stated that it believes Malta should be rapidly phasing out these subsidies, Minister Clyde Caruana has declared wholeheartedly that this will not be so.

18:45 – What are the three pension pillars?

The three pension pillars are a framework used to structure retirement income provision:

First Pillar: The first pillar represents the state pension or social security system, which is a government-funded program providing a basic level of retirement income to all eligible citizens. It is meant to ensure a minimum standard of living in old age.

Second Pillar: The second pillar consists of employer-sponsored pension plans or occupational pension schemes. These are typically funded by both employers and employees and aim to provide additional retirement benefits beyond what the state pension offers.

Third Pillar: The third pillar encompasses individual or private pension arrangements. These are voluntary savings and investment plans that individuals can contribute to independently to supplement their retirement income. They often come with various tax incentives and are managed by financial institutions or pension funds.

Together, these three pillars create a diversified approach to retirement income security, with the state, employers, and individuals all contributing to a person’s overall financial well-being during retirement. What the government seems to be proposing is a hybrid between the first and the third.

18:40 – Automatic private pension schemes

The government reiterates its belief that every worker should have the opportunity to invest in a private pension scheme to supplement their state pension.

This comes before a declaration that it aims to achieve a system where every worker is automatically enrolled in a private pension scheme, one that allows individuals the choice to opt out voluntarily. The third pillar seems significantly closer than the second.

18:35 – Budget Speech Commences

Seatbelts on people, we’re definitely in for a wild one.

18:30 – Pension rise

COLA included, all pensioners will be receiving an additional income of €15 per week.

18:15 – Some peculiar comparisons

Filwaqt Ii aħna differenti mill-Ġermanja kif nallokaw ir-riżorsi
tagħna, aħna bħal Ġermanja nemmnu fid-dixxiplina fiskali u
nħares ’il quddiem li jkollna qbil fuq livell Ewropew fuq ir-regoli
l-ġodda marbuta mal-Economic Governance Framework.

The budget document has just been made publicly available. We’ll be bringing you the most important outcomes, but I thought this proclamation was wishful enough to warrant a spotlight.

18:10 – Malta Ġusta

Is the promise this year’s budget carries. But in the world of politics, promises are plenty, and there have been little signs that justice in any sense is exactly this government’s priority, let alone socioeconomic.

We are yet to see of course, but every announcement that ensues from the moment Mr. Caruana starts his reading should be held up to the standard he ambitiously set out; Is this what a Just Malta looks like?

17:45 – What of our public debt?

Spending money is well and good. Growth and social measures will keep coming as long as we keep spending. But our public debt has been on a climb for many years now, standing at over €9,000,000,000. It is still to be seen whether this year will see any real efforts made to curtail the growing gap in expenditure and income.

17:30 – Some actual questions: Will COLA be taxed?

This year workers will get just short of €13 in Cost of Living Adjustment increase to their salaries. Till now, this investment has been taxed. Trade Unions and stakeholders alike have all agreed on a proposal that this should no longer be the case in 2024, as more and more grapple with an increasing cost of living pressure.

17:20 – Presidential copy presented

The President of Malta, George Vella, is presented with a copy of the Budget publications by the Minister for Finance, Clyde Caruana

17:00 – National Broadcaster analytical as always

As we prepare to cover the major points of this budget procedure, it felt discouragingly familiar to sign into the TVM stream (expecting to meet a debate on what ought be proposed), only to find a journalist asking the real questions:

“Everyone is wondering, what colour suitcase will Clyde Caruana be holding?” Keep it up Super TVM

16:00 – 30th October

Welcome to our live coverage of the Maltese Budget 2024! Join us as we break down key financial decisions, policies, and their potential impact on Malta’s future. Stay tuned for real-time updates, expert insights, and the latest reactions.