Issue link: https://maltatoday.uberflip.com/i/1528615
2 maltatoday | TUESDAY • 29 OCTOBER 2024 BUDGET2025 COLA Increase of €5.24 per week. €5.24 €100 to €1,500 €8PER WEEK €550 - €1,000 ADDITIONAL COLA FOR VULNERABLE PEOPLE INCREASE FOR ALL PENSIONERS BONUS FOR THOSE WHO DO NOT QUALIFY FOR A PENSION All pensioners will benefit from a €8 increase per week because of inflation. This will cost the government €41.6 million. People who paid up to 1 year's National Insurance will receive €550. Those who paid up to 9 years' N.I. will receive €1,000. The aid of €100 to €1,500 will once again be distributed in December and May. The actual amount will be based on the family's means and the number of children in the family unit. This benefit is paid every year. It is revised upwards whenever inflation rate surpasses 2% and when inflation across any three of five main sectors - food, housing, utilities, household maintenance and health - tops the average of the previous five years. BENEFITS Between changes in tax bands, spending on subsidies, and other budgetary measures, the government should be putting around €550 million in people's pockets. REAL GDP GDP growth is expected to hover between 4.3% and 4.5% over the next three years, which is well above the real GDP growth averages at EU level. INFLATION The inflation rate will also moderate between 2.1% and 2.3% over the same time period. REVENUE & SPENDING The gap between recurrent revenue and recurrent expenditure is expected to widen significantly over the next years. In 2025, recurrent expenditure will sit at 29.3% of GDP while revenue will stand at 31.5%. By 2027, these will be 27.5% and 31.5% respectively. This growing gap between government revenue and expenditure comes down to increased efforts in tax collection, as well as decreased spending on energy subsidies as a percentage of total government expenditure. CAPITAL EXPENDITURE Capital expenditure is set to grow over the years. It is set to dip slightly in 2025 to 4.4% of GDP, but by 2027, the government will be spending 5% of GDP on capital projects. SUBSIDIES As far as energy subsidies are concerned, the share of government spending on this measure should drop to 2.4% in 2025. In 2023, the spending share was 4.8% of recurrent expenditure. DEFICIT The deficit should decrease over the years and reach the 3% of GDP target in 2026. In 2025, the deficit should drop to 3.5% of GDP. DEBT Public debt will increase slightly as a percentage of GDP but will only reach 50.1% in 2025 before dropping to 50% in 2026 and 49.2% in 2027. €250 CHILDREN'S ALLOWANCE Children's allowance will increase by €250 for every child in 2025. Gov- ernment will be spending a total €16.5 million on the additional allow- ance. ENVIRONMENT • Extension of renewable energy and water grants • Urban greening projects CARERS ASSISTANCE Carers will receive an additional €5.24 per week. DISABILITY ASSISTANCE Disability assistance is being raised by €3.49 per week. SEVERE DISABILITY An increase of €7.42 per week in additional assistance for severe disability. CHILDREN WITH DISABILITIES An increase of €5 per week in allowance for families with children with disabilities. SPECIALISED THERAPHY An increase of €250 in tax credits for parents with disabled children on specialised therapy.