Issue link: https://maltatoday.uberflip.com/i/585015
17 Promising economic growth has led to some very positive financial results. The positive outcome has spurred the Muscat administra- tion to target those strata which have been neglected and forgot- ten in previous budgets. It acts from a comfortable position. The two sectors given top priorit y are the pensioners and low-income earners. Pension- ers in particular have not had an increment to their pension for the last 20 years. The budget addresses those pensioners at the lower income margin and is addressing this by raising the pension to as high as €8.92 a week: a significant measure that alone will cost the government around €50 million. It will mean that at the higher end, a pensioner could see their pension increase by €463.84 a year. This measure is being seen as a very thoughtful attempt to ad- dress povert y in this vulnerable strata, though the government is playing this down. The government has focused on ageing in a serious manner. It has announced the setting up of a pilot project that will encour- age elderly who opt to stay in their home with the assistance of a carer. Subventions will be up to €4,500, or half the minimum wage salary. The scheme will be available to 170 on the waiting list for old people's homes. We' ll have to wait and see whether this home-grown initiative will be successful. There are also incentives for those who wish to continue work- ing beyond pension age, within the private sector. The focus on the lower mid- dle class is another noteworthy element of this Budget, as well as the initiatives for those who did not benefit from the income tax reforms that followed the 2013 elections: electoral pledges made by both mainstream parties, and criticised for addressing high- income earners in favour of their lower middle class counterparts. This measure will leave the government with a deficit of €12 million. Other initiatives focused on gentrification and the restoration of homes in urban conservation areas. Small pockets of discontent have been addressed too – from police officers who will now be taxed separately at 15% for extra duties, and coaches who will now pay less tax. Gozitzan students will be awarded a higher subvention. There is even a proposal for those who share a common air space on photovoltaic panels. For the very first time, there will be a tourist tax – capped at €5 – for all tourists over the age of 18 residing in a hotel. The government is also address- ing last year's proposal on the inclusion and employment of peo- ple with a disabilit y within the private sector. One very interest- ing point raised in the Budget is the issue of derelict commercial premises. A commitment to look into sanctions against those who do not maintain places looks into the long-awaited consideration of taxing hoarded properties. Projects – apart from the contentious 'American Univer- sit y' – include a new ITS centre in Smart Cit y to host 900 tourism studies. The decision to transfer the centre to Smart Cit y releases the prime site in St George's Bay and opens the possibilit y for a new touristic development in this 'Golden triangle'. The Budget also signalled the conclusions of the link between Malta and Gozo. Concluding that a tunnel under the seabed between the two Islands was feasible. Surely the report in itself will open a new debate on the subject. An RFP for lower St Elmo is also proposed. There are other in- novative considerations such as a consultative document on a food waste bill, addressed indirectly at the shocking dumping of expired foodstuffs by food giant LIDL. The Budget also proposes handsome credit incentives for purchasers of plug electric cars and hybrid cars. Beyond the budget proposals, the statistics on employment and economic activit y are not a ref lection of a perception but true figures that are being readily felt. Over the next weeks, the Budget will be scrutinised and discussed. A superficial but immediate reac- tion is that the Budget addresses some glaring social inequalities. It awards the present administra- tion with some brownie points when it comes to social justice, after a doggedly neo-liberal ap- proach over the past two years. With economic growth at 4.2%, the government is in a favourable position to target the sensitive segments in our societ y. With optimistic economic predictions for next year, one can only im- agine what lies ahead for Malta's economy. Addressed: Pensions and low-income earners Budget 2016 maltatoday, TUESDAY, 13 OCTOBER 2015 Editorial MaltaToday, MediaToday Co. Ltd, Vjal ir-Rihan, San Gwann SGN 9016 EXECUTIVE EDITOR: MATTHEW VELLA DEPUTY EDITOR: JURGEN BALZAN Tel: (356) 21 382741-3, 21 382745-6 • Fax: (356) 21 385075 Website: www.maltatoday.com.mt E-mail: newsroom@mediatoday.com.mt