Issue link: https://maltatoday.uberflip.com/i/885114
6 maltatoday, TUESDAY, 10 OCTOBER 2017 Budget 2018 In and out: the government's income and expenditure in 2018 €1,564,000,000 €920,000,000 €835,500,000 €384,115,000 €329,435,000 €317,000,000 Consolidated fund deficit -€21,400,000 In €4.35 billion Total revenue Income tax Social security VAT Non-tax revenue Licences, taxes and fines Customs and excise Income tax An increase of €131 million is expected to come about on the back of economic growth even as the government will forgo €10.6 million in tax refunds for all those earning €60,000 and less. Social security National insurance contributions will yield an additional €58 million next year, which is a sign of economic growth and higher employment. VAT With the general VAT rate remaining unchanged, increased consumption is expected to yield an additional €60,500,000. The VAT on bicycle renting services has been reduced to 7% from 18%. Non-tax revenue Grants worth €127,652,000 form the bulk of this revenue stream. Government is estimating an increase of €46,652,000 in grants next year. Licences, taxes and fines In a budget with no tax increases government revenue from licences is expected to increase by a lowly €7,967,000. Customs and excise This is the first time in four years that government has not increased excise taxes. Nonetheless, increased economic activity is expected to yield an additional €11,570,000. Consolidated fund The financial estimates for 2018 show that the consolidated fund will register a deficit. The consolidated fund represents the ordinary income and expenditure of government. What the finance minister was referring to when speaking of a surplus was the general accounts that include revenue and expenditure of government agencies. Income from the Individual Investor Programme is recorded under the general accounts. It helps reverse the ordinary deficit.