Issue link: https://maltatoday.uberflip.com/i/1541660
7 gozotoday | FRIDAY • 28 NOVEMBER 2025 NEWS THE 2026 Budget allocates a record level of direct funding to Gozo, the Ministry for Gozo announced, with significant in- vestments planned across infra- structure, cultural projects, and public services. Minister for Gozo Clint Camilleri told Parliament earli- er in the week that the budget represents the highest alloca- tion ever for the island, with recurrent expenditure rising 21 percent from €77.9 mil- lion to €94.5 million, and cap- ital expenditure increasing 81 percent from €15.2 million to €27.5 million. "This is an absolute record of direct funds dedicated to ser- vices and projects in Gozo," Camilleri said. He highlighted that Gozo, once considered a fi- nancial burden on government resources, now contributes sig- nificantly to the national econ- omy. Among the key announce- ments, the existing Court building in the Citadel will be converted into the administra- tive centre for Gozo's European Capital of Culture 2031 project. The move follows Gozo's re- cent advancement in the selec- tion process for the title. "The Citadel building will serve as the hub for the admin- istration of the European Capi- tal of Culture project, reflecting our vision for Gozo as an Island of Villages," Camilleri said, em- phasizing the Government's commitment to valorising Gozitan heritage and identity. Infrastructure development is a central priority for the 2026 Budget. The Ministry is con- tinuing extensive roadworks to reduce congestion in Rabat and improve access to west- ern villages including Żebbuġ, Għarb, San Lawrenz, and Għas- ri. Recent projects include the completion of roads beneath the Citadel, the road behind the fortifications, and Triq l-Imgħallem, as well as the re- building of Triq Għajn Qatet and Triq Sir Arturo Mercieca in Victoria. The Ġorġ Pisani bypass re- cently opened, allowing traffic to Marsalforn to bypass Victo- ria's centre. The Ministry plans to continue upgrading the main Marsalforn road, which is roughly four kilometres long. Other projects include the re- building of Triq Sant'Antnin, Triq l-Imġarr, and a series of roads in Nadur and Qala. The Government also plans to con- struct 100 new residential roads in Gozo over the next three years, in consultation with local councils. In addition, regeneration works are underway on rural roads including Wied Juno, Għajn Abdul, and Triq Ta' Spi- teri, which serve 57 farmers and 92 agricultural plots. Pedestrian improvements are also planned between Victoria and the Mul- ti-Modal Hub in Ta' Xhajma to encourage walking. Gozo's larg- est square, Għajnsielem Square, will undergo regeneration with funding from the Ministry and the Planning Authority. Camilleri also outlined major investments in sports and rec- reation, including the Sports and Aquatic Pavilion in Rabat, Victoria Park, and the open space in Pjazza l-Assedju. Ed- ucation, elderly care, cultural festivals, and connectivity re- main priorities for the island. "The Government's work is delivering a more beautiful environment and modern in- frastructure that supports eco- nomic development," Camilleri said. "With this growth and prosperity, we are building a strong economy that guaran- tees a future for our children." Gozo set for record budget investment and major infrastructure projects in 2026 Budget 2026 was announced on 27 October with the theme 'A strong economy, a future for our children' THE National Audit Office (NAO) has found that eight- een Local Councils, including some in Gozo, recorded negative working capital in their 2024 fi- nancial statements. Victoria and Nadur were among five councils with more than a 100 percent increase in negative working capital. The NAO said these councils al- ready had "negative working capital that has worsened fur- ther during the year, signalling ongoing financial strain, re- quiring immediate corrective measures." The other three were Mosta, Dingli, and Attard. Zebbug Local Council record- ed up to a 60 percent increase, while Gharb showed improve- ment in its position. Auditor General Charles De- guara presented the annual re- port on Local Government to House Speaker Anglu Farrugia. By the end of October 2025, 59 Local Councils, six Regional Councils, and the Local Coun- cils' Association had submitted audited accounts. Nine coun- cils had not submitted accounts by the report's finalisation. The NAO noted that all coun- cils responded to Management Letters by the end of October, but ongoing shortcomings re- main a concern. Compliance audits at Mellieha, Nadur, and Xghajra revealed repeated is- sues, mainly non-compliance with procurement regulations, accounting errors, poor man- agement of fixed assets, and improper handling of accounts payable. The Office urged councils to strengthen oversight, invest in staff training, implement time- ly corrective measures, main- tain accurate documentation, and improve collaboration to enhance governance and ac- countability. Other findings included: • Thirty-seven councils re- ceived a qualified "Except For" audit opinion due to insufficient evidence. • Nine councils had an Emphasis of Matter par- agraph raising concerns over their ability to meet financial obligations. • One council's financial statements could not be audited due to multiple shortcomings. • Thirty-three councils, two Regional Councils, and the Local Councils' Association recorded deficits in their State- ment of Comprehensive Income. • The NAO said the report analyses the causes of these shortcomings and provides recommenda- tions for corrective ac- tion. NAO report highlights rising financial pressure in local councils Victoria is among one of the five councils with a 100 percent increase in negative working capital (Photo: James Bianchi)