Issue link: https://maltatoday.uberflip.com/i/1510993
BUDGET2024 22 maltatoday | SUNDAY • 5 NOVEMBER 2023 MALTA'S military spending next year will reach €85.7 million of which €8.5 million are capital expenditure, the budget esti- mates show. The Armed Forces of Malta's recurrent expenditure will reach €77.2 million in 2024, an increase of €8.3 million. The in- crease is largely due to higher wages for the 1,700-strong force. Wages constitute 84% of the AFM's recurrent expenditure at €64.6 million, representing an increase of €6.7 million. Under programmes and initiatives, the AFM has been allocated €900,000 in re- current expenditure for the Common Se- curity and Defence Policy, an increase of €200,000 over 2023. The budget allocated for reserve forces is €28,000 after having been slashed to just €5,000 in 2023. Capital expenditure in the military is split between €6.5 million on property, plant and equipment and €2 million for EU joint procurement, something that was not budgeted for in 2022 and 2023. Malta, the smallest EU country, has the smallest military budget in the bloc with second smallest budget being that of NATO-member Luxembourg with a spend that surpasses €300 million. A budget of €35 million has been allocated for film industry incentives, a substantial increase of €24 million over the approved estimate for 2023. The substantial increase is probably the re- sult of significant unbudgeted outlays the Mal- ta Film Commission made in 2023 in terms of the cash rebate incentive for films. The commission came under fire from cer- tain quarters in the industry over the gener- ous uncapped cash rebates granted to film producers who choose Malta as their location. The sequel of Gladiator, was given a rebate of almost €47 million under the existing re- gime that is unlikely to change next year. Budget 2024 allocates another €3 million, the same as this year, for the upgrading of the Malta Film facilities, while the Malta Film Commission will receive €1.8 million for its running expenses, an increase of €200,000. The generous spending on the film industry is however not mirrored in the budget allocat- ed to the Malta Tourism Authority. The MTA will have to do with a cut of €9.5 million in its budget next year and contend with €110 million much to the concern of tourism op- erators. The Tourism Ministry was also allocated €8 million, an increase of €500,000, for the Institute of Tourism Studies and a budget of €1 million has been earmarked for a "nation- al cleaning and maintenance campaign" of which no detail was provided. THE police budget will surpass the €100 million-mark next year with the bulk of spend- ing going on wages for the 2,000-strong force. Budget 2024 allocates €100.1 million in recurrent expend- iture, of which 92%, or €92.3 million, represent wages. The budget signals wages within the police force will increase by €13.6 million. But while the force will be spending a lot of money on its human resources, the budget only allocates €5 million for capital investment. The civil protection will have a recurrent budget of €11.9 million next year, a modest increase of €1.1 million over 2023. With wages totalling €10.5 million they constitute 88% of the civil protection's re- current budget. In terms of capital expendi- ture, the budget only allocates €5 million. Military spending reaches €86 million A Gladiator lesson: Film incentives budget increased Police budget surpasses €100 million-mark Budget titbits and curiosities As the dust settles on Budget 2024, KURT SANSONE trawls through the estimates to understand how government will spend money from the public kitty next year. Recurrent Capital AFM: €77.2 million €8.5 million Police: €100.1 million €5 million Civil Protection: €11.9 million €5 million