‘Malta Is Not Entering Austerity’: Minister Pledges No New Taxes Or Drop In Government Spending
Malta’s Finance Minister Clyde Caruana has dismissed suggestions that the government is set to enter a period of austerity, insisting that government expenditure will increase in 2023.
However, he did say that the government will “shift its priorities” in where it would spend its finances, stressing that the focus will be on shouldering increased costs for energy and food following the Russia-Ukraine conflict.
“If we do not, thousands in the country will suffer because of it,” Caruana said, revealing that government expenditure on food and energy is set to increase to €600 million in 2023.
Speaking during a pre-budget document address, Caruana also said that the government will not introduce new taxes or increase any current ones. COLA will also be increased substantially.
He also stressed that the government will maintain a growth rate of 4% and will also reduce the deficit over 2023.
Caruana also dismissed suggestions that the government plans to put a halt on capital projects, but did not say outright that there will be any cuts to the current budget available for certain sectors.
Still, his address did hint that there will be certain cuts in other sectors, merely saying that the government must focus on ensuring finances are stable while also addressing key priorities.
“The government must prioritise how funds are used…the biggest problems are ahead of us and the government needs to act,” he said.
“This will not be a 100-metre run – this will be a marathon.”
The University of Malta has already confirmed its budget has been slashed by around €1.1 million, while there are claims that infrastructural projects could hit a snag.
In fact, Prime Minister Robert Abela has hinted at bringing in private-public partnerships to help with infrastructural projects.
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