Issue link: https://maltatoday.uberflip.com/i/1376560
12 maltatoday | SUNDAY • 23 MAY 2021 NEWS NICOLE MEILAK MALTA Enterprise was gov- ernment's biggest spender throughout the COVID-19 pan- demic, financing 51% of total aid announced by government. The National Audit Office will be reviewing the COV- ID-19 mitigating measures adopted by government since the start of the pandemic in 2020, exploring the volume of cash dedicated to these meas- ures. Malta Enterprise enjoyed the highest allocation, largely due to the €400 million wage supplement scheme. Another €400 million was set aside for investment in industrial infra- structure, including the Life Sciences Park, Kordin Busi- ness Incubation Centre, the former landfill at Marsa and other projects by Malta Indus- trial Parks. This investment will see in- dustrial zones expand vertical- ly to create added space, at a total cost of some €470 million. At the time of their announce- ment, the estimated costs for the industrial investments and wage supplement schemes accounted for nearly half – 45.4% – of the total COVID-19 budget. After Malta Enterprise, the Malta Development Bank (MDB) was the second big- gest spender with a dedicated budget of €350 million. Up un- til September 2020 – the cut- off date for the NAO's prelimi- nary review – MDB spent €74.5 million of this. Following MDB, the Office of the Commissioner for Rev- enue was responsible for the thid largest financial package at €255 million. Of this budget, over half was already spent by September last year. On a wider level, Malta spent at least 33% of its estimated COVID-19 budgets. Of the amount spent by September 2020, five measures accounted for over 90% of the cash spent. The wage supplement took up the bulk government finances, followed by several tax deferral schemes set up by the Commis- sioner for Revenue. This was then followed by the bank guarantees schemes and added assistance to the medi- cal sector. At €34.4 million, the voucher scheme was government's fifth most expensive COVID sup- port measure, up until Septem- ber 2020. This preliminary review by the NAO will be providing the initial foundations for the of- fice to map out a wider audit programme relating to these fiscal measures. Timeline of fiscal measures A rescue package worth €1.8 billion was announced in March 2020, a couple of weeks into the outbreak locally: €1.6 billion of this package dedicat- ed for added liquidity in com- panies, of which €700 million in tax deferrals and €900 mil- lion in guarantees. Health authorities were allo- cated an additional €35 million budget to combat the pandem- ic, while government promised to pay companies €350 per employee on quarantine leave apart from parent, unemploy- ment, medical and disability benefits. Government forked out fur- ther money in the form of a new and improved wage supplement scheme: the im- proved package saw govern- ment finance a full five-day work week at a minimum of €800 per month for all workers and self-employed in critical sectors that were decimated by the coronavirus measures. Employers would guarantee a minimum top-up of €400 per month per employee to ensure that employees receive a mini- mum of €1,200 per month. A second tranche for compa- nies and sectors hit by reduced consumption, saw the govern- ment finance one day per week in wages, based on a monthly pay of €800. All this was eventually fol- lowed up by a €753.4 million Economic Recovery Plan, launched on 8 June, which saw the introduction of 24 new measures. Among those measures introduced was the well-received voucher scheme, rent subsidy, and reduction in the tax on property transfers. nmeilak@mediatoday.com.mt Malta Enterprise forked out lion's share of COVID-19 cash Estimated Cost Amount Spent Estimated Cost Industrial infrastructure €400,000,000 Wage supplement €400,000,000 Bank guarantees €350,000,000 Tax deferrals €200,000,000 Assistance to medical sector €130,000,000 Rent subsidy € 50,670,000 Voucher scheme € 45,000,000 Stamp duty € 32,000,000 Electricity Bill Refund € 30,000,000 Parent bene t € 28,000,000 Property Tax € 23,000,000 Unemployment bene t € 19,000,000 Medical bene t € 11,000,000 Other € 43,708,500 Estimated Cost Amount Spent Estimated Cost Industrial infrastructure €400,000,000 Wage supplement €400,000,000 Bank guarantees €350,000,000 Tax deferrals €200,000,000 Assistance to medical sector €130,000,000 Rent subsidy € 50,670,000 Voucher scheme € 45,000,000 Stamp duty € 32,000,000 Electricity Bill Refund € 30,000,000 Parent bene t € 28,000,000 Property Tax € 23,000,000 Unemployment bene t € 19,000,000 Medical bene t € 11,000,000 Other € 43,708,500 Estimated Cost Amount Spent Estimated Cost Industrial infrastructure €400,000,000 Wage supplement €400,000,000 Bank guarantees €350,000,000 Tax deferrals €200,000,000 Assistance to medical sector €130,000,000 Rent subsidy € 50,670,000 Voucher scheme € 45,000,000 Stamp duty € 32,000,000 Electricity Bill Refund € 30,000,000 Parent bene t € 28,000,000 Property Tax € 23,000,000 Unemployment bene t € 19,000,000 Medical bene t € 11,000,000 Other € 43,708,500 Estimated Cost Amount Spent Estimated Cost Industrial infrastructure €400,000,000 Wage supplement €400,000,000 Bank guarantees €350,000,000 Tax deferrals €200,000,000 Assistance to medical sector €130,000,000 Rent subsidy € 50,670,000 Voucher scheme € 45,000,000 Stamp duty € 32,000,000 Electricity Bill Refund € 30,000,000 Parent bene t € 28,000,000 Property Tax € 23,000,000 Unemployment bene t € 19,000,000 Medical bene t € 11,000,000 Other € 43,708,500 Estimated Cost Amount Spent Estimated Cost Industrial infrastructure €400,000,000 Wage supplement €400,000,000 Bank guarantees €350,000,000 Tax deferrals €200,000,000 Assistance to medical sector €130,000,000 Rent subsidy € 50,670,000 Voucher scheme € 45,000,000 Stamp duty € 32,000,000 Electricity Bill Refund € 30,000,000 Parent bene t € 28,000,000 Property Tax € 23,000,000 Unemployment bene t € 19,000,000 Medical bene t € 11,000,000 Other € 43,708,500