Finance Minister Prof. Edward Scicluna, presented the Budget 2015 in The House of Representatives this evening, the delivery of the speech took three hours and fifty minues.

Earlier today, the Finance Minister said that the Budget 2015 “will reflect the country’s optimism, consolidate growth, and ensure that all society moves forward together.”

Some of the main highlights that have been announced in Budget 2015 are as follows, and will be updated:

The Minister announced, that the year would end with a a 2.1 per cent deficit, with rate of growth for the next year estimated to be at 3.5% – Target deficit for next year is 1.6%.

There will be an excise tax of 20c per litre on wine. Duties also to be increased on cigarettes and tobacco products, as well as mobile phones.

Older cars will pay a higher licence fee, However, unleaded petrol is to be reduced by 2c per litre from January 2015, with diesel down by 1c.

The price of gas is to remain stable until April, at a fixed price of €18.

Top rate of income tax for those earning up to €60,000 is to be reduced from 29% to 25% in 2015.

The eco-tax is to be phased out, and the partial tax waiver for one-year on those purchasing a new property is to be extended by 6 months.

There will be the implementation of a final withholding tax of 8% on the value of transferred property.

COLA will be 58c per week for all workers, those will not be benefiting from income tax cuts, will get a one-off payment of €35. Pensioners will be getting the full COLA

Some 9,000 families who are at risk of poverty will be paid a bonus of €400 for each child, up to a maximum of 4 children, the stipulation is that the children must achieve a 95% attendance rate at school.

Individuals under 23 years of age, are to be urged to following training under the Youth Guarantee Scheme, otherwise the will lose their unemployment benefit. Similarly single mothers who are under 23 years of age and not in employment will lose benefits if the also refuse to enter the same scheme, the child must be one-year old.

Single parents on social benefits, who return to work will keep 65% of the benefit in first year, 45% in the second and 23% in the third.

The Minister said that to address poverty and social exclusion, the Government will be introducing a Child Supplement of €400 for every child until the second child, and €200 from the third child onwards, to families whose household income is less than €11,900. The supplement will be tied to school attendance, regular medical check-ups and the child’s participation in sport and cultural activities, with the aim of improving the children’s education and psychosocial health. It is estimated that 22,000 children in 9,000 families will benefit from this measure.

Maternity benefits will rise by more than €6 per week as from January, with self.employed women, also to be given an increase in maternity leave payment to €73 a week.

The payment for those aged 75 and over will be €300 per year.

Civil Service Dept employees to benefit from a pension of service of 25 years.

10 new homes to be opened for those with a disability, the first one will be in Siggiewi.

Disabled people will receive a full pension. Companies that employ disabled people will receive tax credits up to €4,500. The Minister said that businesses employing more than 20 people that refuse to employ disabled people will have to annually contribute €2,400 to a National Fund, for each disabled person they do not employ.

The Government is committed to upgrade stipends with the cost of living, the Minister said, therefore, in 2015 stipends will increase by the pro-rata amount of COLA and for the first time, these will be topped up by a one-time additional pro-rata bonus per week in view of the fact that students are solely dependent on COLA as the main source of increase to their student income.

The Minister said that the Government will continue improving the student grant system, including the one-time grant at the beginning of the school year, stipends every four weeks, and the supplementary grant to students coming from low income families. In order to maximise the aid to each student, all student maintenance grant income will be tax exempt.

The implementation of the One Tablet Per Child initiative started in 2014 with the Pilot Project involving some 340 students in 20 State Church and Independent Schools. After March 2015, there will be a period of evaluation so that the resulting recommendations will be launched on a national level. Moreover, by October 2016, a tablet will be issued to every student starting from the 4th Year of Primary School in State, Church and Independent schools.

VAT on audio books will go down to 5% from 18% from January.

There will be the construction of new schools in Rabat, Malta, Naxxar and Victoria, Gozo. A White Paper is also to be presented looking at school hours, with the aim of reducing the morning traffic congestion.

The Government will be launching a scheme whereby cruise liners can remain in Malta overnight. They will be able to open their casinos after obtaining approval from the Lotteries and Gaming Authority upon the payment of a fee. To safeguard Maltese casinos, these cruise liners will only be able to allow registered passengers to engage in such activities. In addition, and in order to promote Gozo, cruise liners which choose to remain overnight in Gozo will be exempted from paying the fee.

More investment in the Maltese film industry to attract more companies to film on the islands.

Minister Scicluna says that the Government Citizenship scheme has been a success.

For next year, the Minister said that the Government is committed to continue implementing measures that strengthen animal rights. There will be the opening of an animal cemetery, and the launch of a national fund for animal protection. The renewal and installation of shelters for ‘karozzini’ horses will continue.

Energy rates for industry will be reduced at 25% for electricity and 5% for water from March 2015.

The Minister said that during next year, the Police Corps will be further strengthened through an internal reorganisation of the corps. A new Executive Head will be appointed as part of the reform. Now that the Police Academy Building is complete, it will function as a college with accredited courses.

The Minister has said that out-of-stock medicines have been reduced from 130 down to 5.

In line with the National Cancer Plan, the Government intends to introduce a scheme for cervical cancer screening during 2015. In this regard, the necessary investment in equipment and training by foreign experts was intensified to compliment the investment in the Oncology Centre, the Minister said.

There will also be a White Paper issued by the Government on organ donation.

The new operator will take over the public transport system, early next year. The new public transport system will see more routes introduced and an overall improvement in the service of public transport, the Minister said. Subsidies will go up to €23 million, however there will be no increase in bus fares.

The Government will be investing in a system called the Intelligent Traffic Management System. Through strategically placed cameras and messages displayed on screens, drivers will be better guided on how to avoid traffic holdups. The system will also be able to adjust traffic lights automatically according to the volumes of traffic.

An incentive is to be launched for people who are willing to start travelling together by opening bus lanes to those cars which are carrying three or more passengers.

To incentivise the use of school and scheduled transport by parents whose children attend private schools, the Minister said that these parents will be eligible for a tax credit on part of transport charges, up to a maximum of €150 if they use school or scheduled transport.

Recycling – Vouchers to be introduced for those who collect and deposit plastic and aluminium items.

Work on the drafting of a Bill regarding co-habitation is ongoing.

The full Budget 2015 document is available for download here.

Photograph: DOI/Jeremy Wonnacott

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