Last Updated on Monday, 16 December, 2024 at 8:55 pm by Andre Camilleri
Parliament has officially approved the 2025 Budget estimates for all government ministries.
The decision confirms the allocation of funds to various sectors, reflecting the government’s plans for fiscal, social, and economic development for 2025.
Key highlights for next year’s Budget include tax adjustments, increased support for families and pensioners, and investments in sustainable projects.
The COLA for 2025 is set at €5.24 per week, with pro-rata increases for student stipends.
Families and vulnerable groups will see further support through higher children’s allowances, marriage grants, and disability assistance. Property schemes, such as grants for first-time and second-time buyers, have also been extended.
Malta’s GDP growth is forecast to remain at 4.3% in 2025, with a deficit reduction to 3.5% of GDP and public debt levels projected to remain below the EU’s 60% threshold.
Government has also pledged to maintain energy and fuel subsidies despite European Commission pressure to start doing away with them.
When presenting the Budget last October, Finance Minister Clyde Caruana had said that next year’s Budget theme is shifting the focus from quantity to quality, with government planning to address social and economic challenges.
During the voting process, Parliament also voted on several resolutions amendments, with some divisions being called.
The appropriation bill was presented by Caruana at the end of the sitting, which passed in Parliament, authorising the expenditure of government funds.
In a statement, the Labour Party said that a a stark difference emerged between “a Government that is on the peoples’ side and an Opposition that votes against their interests.”
When asked how the Opposition will vote on budget 2025, Opposition leader Bernard Grech dismissed the question with an arrogant ‘Tgħid mhux favur’ (As if we’re going to vote in favour).
“Now that Budget 2025 has been approved, its many positive measures shall come into force in a few weeks’ time, measures to support and invest in families including the middle-class through the biggest tax cut in history,” the PL said.
“In addition to this, the Government shall continue to help to ensure the cheapest electricity bills in the Eurozone, the 10th successive increase in pensions and another substantial increase of €250 in the Children’s Allowance for each child”, it added.
“The Opposition today voted against these positive measures, preferring instead its leaked Pre-budget document, which in the words of its authors lacked substance. In decisive moments like these, the people know who is on their side,” it concluded.
