Issue link: https://maltatoday.uberflip.com/i/1529778
maltatoday | SUNDAY • 24 NOVEMBER 2024 THIS IS A PAID COLLABORATION The Ministry for Finance The Annual Budget establish- es the public spending for the upcoming year in line with the Government's overall priorities and economic and social objectives. The process is spearheaded by the Minis- try for Finance; however, the final budget document re- flects extensive consultation and liaison with all relevant stakeholders. The formulation of the budget is the first step of this process and is initiated by the Economic Policy De- partment's macroeconomic projections. These predic- tions outline the state of the economy and project the expected revenue for the Government. The Budget Affairs Division then steps in to strengthen the forecasts by supplementing data on revenue and establishing the upper spending limit, commonly referred to as the expenditure ceiling. Simulta- neously, it asks ministries to submit their business plans. In this regard, Ministries and Departments outline their priorities in a three-year business plan, while provid- ing details on their planned expenditure and the pro- jects and initiatives they will pursue with the allocated funds. Subsequently, bilateral meetings with the Ministries are held by the Ministry for Finance to further discuss the business plans. Consultation is key in the preparation of every Budget. Indeed, in preparation for the annual budget, the Govern- ment issues a pre-budget consultation process to engage in discussions with the social partners and all the interested stakeholders as well as with the general public. Dialogues are held with wide-ranging sectors in society that represent economic interests, employ- ee rights, and general societal wellbeing. The annual draft budget document is then presented to the Cabinet of Ministers and subsequently submitted to the European Commission for evaluation. Thereafter, the budget document is present- ed to Maltese Parliament, where it is discussed and a vote is taken. Once adopted, Government Departments focus their energy on im- plementing and monitoring the budget measures and initiatives in the various sec- tors falling under their remit, including health, education, social security and housing, the environment and infra- structure. Examples of Budget measures for 2025 In its 2025 Budget, the Government emphasised the importance of occupational pensions since they enable future pensioners to have ad- equate income in retirement. The Government's ultimate goal is that every employee entering the workforce or changing jobs would have the opportunity to invest in an occupational retirement plan. Employers will not be required to make contribu- tions; however, they must provide employees the op- portunity to join a plan. The Government will lead by ex- ample by offering to match the public sector employees' contributions up to a €100 limit per month. This meas- ure aims to safeguard the employees' future pensions and, therefore, their quality of life after retirement. Pensioners' income has been once again increased while, at the same time, continuing to be tax exempt. Similarly, widowers' pensions have also been strengthened to alleviate some of the financial burden on the most vulnera- ble. Moreover, active pen- sioners opting to remain in employment will also benefit from increased tax cuts. Another budget measure announced for 2025 was the restructuring of tax brackets for individuals or house- holds. This includes wider tax-free brackets for all three tax computations: single, married or parent. These are but three examples of employment and social initiatives that the budget touches upon. The Govern- ment's priorities may differ from year to year; however, the established budgetary process in place guides the Public Sector to prepare and successfully deliver the budget plan each year. The annual Budget process