4 maltatoday | TUESDAY • 12 OCTOBER 2021
BUDGET2022
In and out: the government's income and expenditure in 2022
€1.9 billion
€1.2 billion
€1.2 billion
€570 million
€469 million
€390 million
€345 million
DEFICIT
€800
million
In
€6.2 billion
Total revenue
Income tax
The projection is €148 million more than what government expects to collect by
the end of 2021 despite forgoing €23 million in tax refunds to all those earning
less than €60,000. Tax refunds will be higher with the maximum pay out
increasing to €140 for those on the lower rungs.
Social security
National insurance contributions will yield €54 million more
in 2022 than the revised estimates for this year, a sign of
government's positive outlook that the economy will grow and
employ more people.
VAT
The VAT rate remains unchanged at 18%. Government is projecting
an increase of €270 million from VAT, indicating that it is banking on
consumption picking up well.
Non-tax revenue
The bulk of this revenue is made up of EU grants to the tune of €248 million.
Government is estimating €45 million less from the IIP.
Borrowing requirement
The government will borrow €1.2 billion next year, of which part will go to zero the
deficit for 2021 and €469 million will go to mitigate the deficit in 2022. Public finances are
expected to end with a deficit close to €800 million.
Licenses, taxes and fines
Government is forecasting €10 million more from duty on documents, probably banking on
sustained activity in the property market. But it is expecting €4 million less from motor vehicle
registration tax.
Customs and excise
The budget includes no increases in excise taxes. However, increased
economic activity is still expected to yield an additional €39 million.
