ARTICLE
25 November 2015

Government Welcomes Commission's Budget 2016 Assessment

FM
Finance Malta

Contributor

Finance Malta is a non-profit public-private initiative set up to promote Malta as an international financial centre, both within, as well as outside Malta. It brings together, and harnesses, the resources of the industry and government, to ensure Malta maintains a modern and effective legal, regulatory, and fiscal framework in which the financial services sector can continue to grow and prosper. The Board of Governors, together with the founding associations: The Malta Funds Asset Servicing Association, the Malta Bankers Association, the Malta Insurance Association, the Association of Insurance Brokers, the Malta Insurance Managers Association, the Institute of Financial Services Practitioners; its members and staff are all committed to promote Malta as an innovative international.
The Government welcomes the European Commission's Assessment on Malta's Draft Budgetary Plan, which confirms that Malta's Budget 2016 is compliant with the Growth and Stability Pact.
Malta Government, Public Sector

The Government welcomes the European Commission's Assessment on Malta's Draft Budgetary Plan, which confirms that Malta's Budget 2016 is compliant with the Growth and Stability Pact. The European Commission is of the opinion that Malta's growth rate of government expenditure is line with the applicable expenditure benchmark. Furthermore, Malta's decreasing debt ratio is also expected to meet the EU debt rule.

The Commission expresses its satisfaction with Malta's fiscal efforts and is positive about Malta's ability to reach its fiscal targets. According to the Commission, the deficit is expected to fall to 1.7% in 2015 and to 1.2% in 2016. The Commission is expecting the debt ratio to fall to 65.2% in 2015 and to 63.2% in 2016. These are in line with the targets projected by Malta.

The Commission confirms Malta's buoyant economic performance in 2015 and describes the macroeconomic scenario for 2015 and 2016 as plausible.

The Commission also confirms that Malta has the lower tax burden on labour, also on the back of the lowering income tax rates announced in the last three Budgets. It also acknowledges that the country's policy initiatives are in line with the Commission's recommendations and acknowledges the various measures announced in the 2016 Budget, particularly those related to the pension reform.

Minister for Finance Edward Scicluna said: "The Government has every reason to be delighted that its 2016 Budget is compliant, as are its expenditure, deficit and debt trajectories."

(Source: Ministry for Finance)

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