Ministry of Finance, the Economy and Investment The world economy - - PowerPoint PPT Presentation

Ministry of Finance, the Economy and Investment

Source: Eurostat

The world economy

Real GDP

Member State 2011 Actual 2012 Estimate 2013 Estimate Member State 2011 Actual 2012 Estimate 2013 Estimate EU27 1.5 (0.3) 0.4 Ireland 1.4 0.4 1.1 EA17 1.4 (0.4) 0.1 Italy 0.4 (2.3) (0.5) Latvia 5.5 4.3 3.6 Austria 2.7 0.8 0.9 Lithuania 5.9 2.9 3.1 Belgium 1.8 (0.2) 0.7 Luxembourg 1.7 0.4 0.7 Bulgaria 1.7 0.8 1.4 Malta 1.9 1.0 1.6 Cyprus 0.5 (2.3) (1.7) Netherlands 1.0 (0.3) 0.3 Czech Republic 1.9 (1.3) 0.8 Poland 4.3 2.4 1.8 Denmark 1.1 0.6 1.6 Portugal (1.7) (3.0) (1.0) Estonia 8.3 2.5 3.1 Romania 2.5 0.8 2.2 Finland 2.7 0.1 0.8 Slovakia 3.2 2.6 2.0 France 1.7 0.2 0.4 Slovenia 0.6 (2.3) (1.6) Germany 3.0 0.8 0.8 Spain 0.4 (1.4) (1.4) Greece (7.1) (6.0) (4.2) Sweden 3.9 1.1 1.9 Hungary 1.6 (1.2) 0.3 United Kingdom 0.9 (0.3) 0.9

Source: Eurostat

The world economy

Real GDP – 2012 (estimated)

(6.0) (3.0) (2.3) (2.3) (2.3) (1.4) (1.3) (1.2) (0.4) (0.3) (0.3) (0.3) (0.2) 0.1 0.2 0.4 0.4 0.6 0.8 0.8 0.8 0.8 1.0 1.1 2.4 2.5 2.6 2.9 4.3 EL PT IT CY SI ES CZ HU EA17 NL UK EU27 BE FI FR IE LU DK DE AT BG RO MT SE PL EE SK LT LV

Source: Eurostat

The world economy

Real GDP – 2013 (estimated)

(4.2) (1.7) (1.6) (1.4) (1.0) (0.5) 0.1 0.3 0.3 0.4 0.4 0.7 0.7 0.8 0.8 0.8 0.9 0.9 1.1 1.4 1.6 1.6 1.8 1.9 2.0 2.2 3.1 3.1 3.6 EL CY SI ES PT IT EA17 NL HU FR EU27 BE LU DE FI CZ AT UK IE BG MT DK PL SE SK RO EE LT LV

Source: National Statistics Office – All figures in € ‘000,000

International trade

Imports and exports

Imports 4,328.1 Imports 5,332.4 Imports 3,608.7 Imports 4,760.6 Exports 2,806.0 Exports 3,815.4 Exports 2,374.5 Exports 3,166.6 2010 2011 2011 (Jan-Sep) 2012 (Jan-Sep)

Employment

Gainfully occupied

137,592 137,937 139,653 142,836 145,453 144,447 146,946 149,764 151,559 2004 2005 2006 2007 2008 2009 2010 2011 2012 (Jun)

Employment creation

Private and public sectors

47,888 47,398 46,686 45,538 43,595 42,541 41,794 40,829 40,624 41,123 40,854 89,975 90,541 91,224 93,175 96,355 99,638 103,659 103,618 106,322 108,641 110,235 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (May) Private Sector Public Sector

Source: National Statistics Office

Employment creation

Persons still working at pensionable age

8,156 9,036 10,206 10,304 11,602 Dec-08 Dec-09 Dec-10 Dec-11 Nov-12

Source: Eurostat

Employment creation

Unemployment – September 2011

4.0 4.5 4.9 5.8 6.3 6.5 7.2 7.3 7.5 7.7 7.7 8.2 8.3 8.5 8.8 9.6 9.8 9.8 10.3 10.9 11.2 11.4 13.1 13.6 14.6 14.7 17.0 17.8 22.4 AT NL LU DE MT CZ SE BE DK RO FI UK SI CY IT FR PL EU27 EA17 HU BG EE PT SK IE LT LV EL ES

Source: Eurostat

Employment creation

Unemployment – September 2012

4.4 5.4 5.2 5.4 6.4 6.8 7.8 7.4 8.4 7.1 7.9 7.9 8.4 12.2 10.8 10.8 10.1 10.6 11.6 10.6 12.4 10.0 15.7 13.9 15.1 12.9 15.9 25.1 25.9 AT NL LU DE MT CZ SE BE DK RO FI UK SI CY IT FR PL EU27 EA17 HU BG EE PT SK IE LT LV EL ES

Source: European Commission

The world economy

Tax on labour – 2010

21.7 23.4 24.4 25.7 26.1 27.0 27.4 30.1 31.3 31.7 32.0 32.0 32.5 33.0 34.8 35.0 36.0 36.9 37.0 37.4 38.1 39.0 39.0 39.3 39.4 40.5 41.0 42.5 42.6 MT PT BG UK IE CY RO PL EL LT LU SK LV ES DK SI EU27 NL EE DE EA17 CZ SE FI HU AT FR BE IT

Source: National Statistics Office

Inflation

RPI

• 1

1 2 3 4 5 6 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11

12-month moving average rate

Annual Rate

Source: National Statistics Office

Tourism

Arrivals and bed nights

2009 935,885 2009 8,031,325 2010 1,056,876 2010 9,015,354 2011 1,127,897 2011 9,357,148 2012 1,144,537 2012 10,021,677 Arrivals Nights

Source: National Statistics Office

Tourism

Spend

2009 751,009,000 2009 802 2010 916,100,000 2010 867 2011 999,715,000 2011 886 2012 1,021,677,000 2012 943 Direct spend Spend per person

Financial situation

Financial estimates

Public debt

62.20% 63.80% 68.81% 68.96% 70.89% 71.55% 70.43% 69.06% 66.99%

2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Revised 2013 Estimated 2014 Estimated 2015 Estimated

Financial estimates

Deficit

2.30% 4.80% 3.77% 3.87% 2.72% 2.34% 1.74% 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Revised 2013 Estimated

Finacial estimates

Consolidated fund

All figures in € 000

2011 Actual 2012 Approved 2012 Revised 2013 Estimates Tax Revenue 2,323,351 2,541,850 2,515,437 2,710,778 Non-Tax Revenue 320,480 419,150 352,937 415,436 Total Revenue 2,643,831 2,961,000 2,868,374 3,126,214 Recurrent Payments 2,361,284 2,450,295 2,498,569 2,561,852 Interest Payments 212,462 230,605 226,704 235,282 Total Recurrent Expenditure 2,573,746 2,680,900 2,725,273 2,797,134 Recurrent Deficit 70,085 280,100 143,101 329,080 Capital Expenditure 288,695 425,327 322,828 424,480 Total Expenditure 2,862,441 3,106,227 3,048,101 3,221,614 Ż Deficit (218,610) (145,227) (179,727) (95,400) Central Government Adjustments 41,631 (8,673) 21,327 (27,500) Żbilanċ tal-Gvern Estiż (176,979) (153,900) (158,400) (122,900) Gross Domestic Product 6,499.17 6,776.00 6,778.63 7,070.11 % of Gross Domestic Product

• 2.72%
• 2.27%
• 2.34%
• 1.74%

Revenue

Tax revenue

All figures in € 000

2012 Revised 2013 Estimate Variations (€) Income Tax 840,000 923,000 83,000 Social Secutiry 632,000 683,000 51,000 Direct Taxation 1,472,000 1,606,000 134,000 Customs & Excise Duties 222,400 239,950 17,550 Licences, Taxes & Fines 239,437 253,828 14,391 V.A.T. 581,600 611,000 29,400 Indirect Taxation 1,043,437 1,104,778 61,341 Ż Total Tax Revenues 2,515,437 2,710,778 195,341

Revenue

Other revenue

All figures in € 000

2012 Revised 2013 Estimate Variations (€) Fees of Office 33,063 32,116 (947) Reimbursements 27,359 28,594 1,235 Public Corporations 815 815 Central Bank of Malta 46,000 48,000 2,000 Rents 28,460 30,645 2,185 Dividends on Investments 20,250 23,750 3,500 Interest 8,077 4,304 (3,773) Grants 123,831 224,892 101,061 Miscellaneous Receipts 65,082 22,320 (42,762) Total Non-Tax Revenues 352,937 415,436 288

Expenditure

Recurrent and capital

All figures in € 000

2012 Revised 2013 Estimate Variations (€) Personal Emoluments 609,852 628,232 18,380 Operational & Maintenance Expenses 117,713 124,205 6,492 Programmes & Initiatives 1,550,979 1,581,000 30,021 Contribution to Government Entities 220,025 228,415 8,390 Recurrent Total 2,498,569 2,561,852 24,872 Capital Expenditure 377,320 476,276 98,956

Budget 2013

The Maltese economy and the international situation

The economy and job creation

• The Maltese economy is expected to grow by 1.2% this year. The EU economy is

expected to shrink by 0.4%.

• During 2012, a number of economic sectors experienced a growth in value

added, including financial services, ICT, professional, technical and scientific services, together with arts, entertainment and leisure.

• Malta is experiencing very positive results in tourism while a number of

factories have announced expansions.

• This is being translated into the creation of new jobs. At 6.5%, malta has the

fifth lowest unemployment rate in Europe. Unemployment in the EU stands at 10.5%, going up to 11.4% in the eurozone.

The Maltese economy and the international situation

The economy and job creation

• Malta has strengthened its financial position, leading the European Commission

to close off the Excessive Deficit Procedure Against it.

• A draft bill will propose the adoption of a modern, transparent framework to

strengthen fiscal translation.

• 12 month inflation in September has gone down to 2.3%.
• Cost of Living Adjustement of €4.08 .

Employment, enterprise and tourism

More incentives towards enterprise

• Since 2008, 167 industrial projects were approved, carrying an investment of

€355 million, creating 3,860 jobs over three years.

• €45 million in assistance to 6,000 businesses.
• Extension of “20 million to industry” scheme: €42 million in schemes to support

international competitiveness, innovation, e-Business, R&D, environment and start-ups. Allocation of 4th calls to 200 further businesses.

• Extension of High Energy Users Scheme to Gozitan industry.
• Government will insisting on preserving Aid Intensities to industry following

2014-2020 Financial Perspectives.

Employment, enterprise and tourism

More incentives towards enterprise

• Continuation of BioMalta Campus with an investment of €38 million.
• Continuation of works in the Bulebel, Hal Far, Kordin, Mosta and Xewkija

Industrial Estates (€17m).

• Continuation of construction of three child care centres within industrial

estates.

• Revision of incubation services to start-ups in Kordin. Development of plug

in/plug out facility for ICT and Digital Content Businesses.

• Strengthening of incentives to attract international film productions (rebate for

production is increased from 20% to 23% and to 25% if Malta is featured as Malta)

Employment, enterprise and tourism

R&I

• Over €6 million investment since 2004 in National Research and Innovation

Fund.

• Over 125 R&D project assisted through FP7 – the fourth highest per capita rate

in the EU.

• Industrial research project Lab4MEMS to strengthen STMicroelectronics’

presence in Malta in collaboration with MCST.

• Continuation of investment in Interactive Science Centre to further attract more

people towards this sector.

• .

Employment, enterprise and tourism

SMEs

• MicroInvest is extended for a further two years and businesses employing to 30

people are now eligible.

• Continuation of MicroCredit and MicroGuarantee.
• Scheme towards the promotion of clusters and networks and to support small

local businesses benefit from the Single Market opportunities

• BSTART: a tax deduction scheme of up to €30,000 for seed capital investment
• Entrepreneurship action plan ranging from Primary Schools to tertiary

education.

Employment, enterprise and tourism

SMEs

• Support to young people willing to explore business opportunities through a

Youth Entrepreneurship Act.

• University will establish an Observatory to strengthen research on business and

the self-employed

• Launch of short and intensive weekend courses for those interested in starting

up their own business

• ERDF Scheme for Gozitan businesses
• Strengthening of the financial services sector through the establishment of an

international market for pensions and retirement schemes

Employment, enterprise and tourism

Tourism

• MTA budget up to €37 million
• Strengthening of direct air connections with important markets that sustain

tourism industry

• Further promotion of Maltese and Gozitan touristic product through innovative

and technological means

• 40 million euro investment in Air Malta to support restructuring programme.
• Application for ERDF funding for restoration works on Fort St Angelo
• Continuation of rehabilitation works on St. Elmo’s Fort.

Employment, enterprise and tourism

Tourism

• Completion of Aquarium in Qawra - €15.4 m.
• Start of works at Xemxija Bay
• Continuation of Ggantija Project
• Licenced hotels will benefit from Investment Aid on 15% of capital expenditure

(in form of tax credits)

• Incentive schemes to increaseboutique hotels in Valletta (tax deductions on

investments related to purchase and development of these sites and MEPA/MTA fees)

Employment, enterprise and tourism

Tourism

• Winter incentive for visiting Gozo
• Revision of licences related to property in Gozo
• Strengthening of investment in the creative and cultural sector through the

implementation of the Creativity Strategy

• Extensive cultural programme in preparation of 2018 – European Capital of

Culture

Employment, enterprise and tourism

Aviation and maritime sectors

• Transformation of former Shipbuilding site in Marsa into a Maritime park of

172,000 metres squared

• Transformation of former Air Malta Head Office into a zone dedicated to the

expansion of the aviation sector. This development will take place through PPP.

Employment, enterprise and tourism

Property

• The present choice on paying capital gains tax or 12% final witholding tax is

extended from 7 to 12 years as from 2013

• Administrative reform related to property valuation:
• Couples or persons purchasing the first residential home taking out bank

loans will be able to provide the bank architect property valuation

• In case of properties whose value exceeds €250,000, before signing of

contracts the seller and buyer may request the department to send its architect to issue price valuation on which stamp duty is paid. This valuation remains valid for 6 months from date of issue.

Employment, enterprise and tourism

Property

• As from 01/01/2013 removal of stamp duty on will transfer of property from

parents to children.

• 3.5% stamp duty ceiling for first time buyers is increased from €116,468.67 to

€150,000

Employment, enterprise and tourism

Training

• Active scheme will focus on those young people who are on the unemployment
• register. Following provision of necessary training, these young people will be
• ffered a work experience of 20 hours in a sector which best relates to their
• profile. A pro-rata benefit will apply.
• Another scheme will target unemployed young persons to explore

entrepreneurship opportunities. The applicant will be able to choose self- employment or membership in a cooperative. Training and mentoring will be provided, while employers employing up to persons will benefit from a deduction in social contributions.

• An innovative apprenticeship programme which provides financial incentives to

employers and students. Government will pay SSC on the employer’s behalf. Apprentice stipend will increase from €86 to €95.

Employment, enterprise and tourism

Training

• Extension of minimum wage scheme, with an investment of €300,000 in favour
• f those earning up to 300 euro a week. These will receive 25 euro a week.
• Youth.Inc, target towards young people aged 16-21 is extended to those aged up

to 24

• Strengthening of professional team behind Youth.Inc
• Job Bridge programme will provide specialised training to persons with a

disability to strengthen their skill set to adapt to the job market

Employment, enterprise and touriem

Women and the job market

• Continuation of construction of 4 child care centres (Naxxar, San Gwann, Gżira

and Żurrieq).

• Continuation of up to €1,300 tax deduction for parents sending their children to

child care centres

• Women returning to work after 5 years or after having children will maintain
• ne year tax free status
• Maternity Leave up to increases 18 weeks
• Children’s allowance increases from €350 to €450, and to€527 for families

dependent on a minimum wage

Employment, enterprise and tourism

Income Tax

• A person earning €45,000 saves €500 in 2013, €1,000 fl-2014, & €1,500 in 2015.
• A person earning €60,000 saves €1,200 in 2013, €2,400 fl-2014, and €3,600 in

2015. Rate Single Computation Joint Computation Parent Computation 0% 0 - 8,500 0 - 11,900 0 - 9,300 15% 8,501 -14,500 11,901 - 21,200 9,301 -15,800 25% 14,501 - 19,500 21,201 - 28,700 15,801 - 21,200 32% (2013) 29% (2014) 25% (2015) 35% 60,001 60,001 60,001 19,501 - 60,000 28,701 - 60,000 21,201 - 60,000

Infrastructure, projects and the environment

Energy and environment

• Delimara Power Station extension in line with best EU environmental standards.

An investment in favour of better air quality. Together with the interconnector with Sicily, this will ensure the permanent closure of Marsa Power Station.

• Continuation of negotiations with the EU for Budget 2014-2020 for financing of

gas pipline

• Support to Enemalta (€25 m) is provided again for 2013 to ensure tariff

stability

Infrastructure, projects and the environment

Energy and environment

• Introduction of feed-in tariffs for PV panels not supported through other

funding:

• Installations of less than 1MW on rooftops: 18c/kWh for 20 years;
• Installations of less on the ground: 17c/kWh for 20 years;
• Installations of less than 1MW on rooftops: 17c/kWh for 20 years; and
• Installations of less than 1MW on the ground: 16ckWh for 20 years.
• Plans for a new PV panel scheme for households
• Finalisation of scheme in favour of families not able to invest in PV panels on

their rooftops

Infrastructure, projects and the environment

Energy and the environment

• Extension of Solar Water Heater rebate (40% up to max. €400 )
• 15.25% rebate up to €1,000 on double glazing and roof insulation.
• These schemes will be partially financed through increase in excise duty on fuel

consumption of 2c per litre on petrol and diesel and 5 euro per tonne on cement.

Infrastructure, projects and the environment

Embellishment projects

• Continuation of numerous projects in Valletta:
• Conversion of Fish Market into a boutique hotel
• Conversion of Boffa Hospital into a hotel
• Restoration of Castille and Grand Master Palace facades
• Commencement of restoration of St John’s Co-Cathedral Façade
• Completion of Cirkewwa Terminal
• Completion of Marsaxlokk breakwater
• Continuation of flood relief project, an investment of €56 miljun through

underground tunnels. This will increase water storage by 700,000 cubic metres,

• ver and above today’s 210,000 cubic metres

Infrastructure, projects and the environment

Capital Projects

• Water park in Gozo and in Marsascala
• Completion of Swieqi Civic Centre and San Gwann Public Garden.
• Commencement of underground carpark and public garden on Sliema Front and

works on Paola square

• Continuation of works on fortifications, an investment of €36 million. Mdina and

Birgu Ditches are rehabilitated for the public’s enjoyment.

• Reconstruction of Vilhena Palace in Mdina and rehabilitation of Salini.

Infrastructure, projects and the environment

Roads

• Saru aktar minn 12-il kilometru ta’ toroq arterjali.
• Bejn toroq residenzjali ġodda u dawk li għamlu l-Kunsilli Lokali, saru kważi 500

triq ġdida. Ix-xogħol fuq toroq residenzjali ġodda għadu għaddej, u qed jinħarġu aktar kuntratti biex isiru oħrajn.

• Ikompli x-xogħol fuq il-bypass ta’ Pennellu u fuq l-underpass fil-Marsa.

Infrastructure, projects and the environment

Property

• Scheme for the restoration of residential properties which are classified as

Grade 1 and 2 in UCAs. This will include provision of 25% on expenditure on such works up to a max. of €5,000. Properties in Valletta benefit up to 30%.

• NGOs will also benefit from a similar scheme on buildings transferred to them

from Government. Buildings classified Grade 1 and 2 in UCAs are eligible. 25% rebates up to €2,500.

• Individuals and companies that purchase properties outside UCAs for

restoration purposes will benefit from a 2% deduction in stamp duty. A 20% tax credit of up to€200,000 related to restoration and development is also applicable.

Infrastructure, projects and the environment

Transport

• Euro 5 car registration tax is reduced by a maximum of 30%.
• Euro 4 car registration tax is increased by an average of 10%
• Tax rate on N1 commercial vehicles is reduced by 12.5% to incentive purchase of

new cars

• 500 euro scrappage scheme for new private or commercial (N1) cars on

scrappage of older vehicle

• Removal of registration tax on motorcycles with 250cc engine and 25%

reduction on other engine capacities

• Removal of registration tax on classic cars aged 50 years and over

Infrastructure, projects and the environment

Transport

• Classic care definition is lowered from 35 to 30 years.
• Removal of annual circulation licence for classic cars. Replaced by administrative

fee of €8.

• Rebate scheme of €200 for conversion of cars to autogas.
• Reduction of annual circulation licence for autogas powered cars registered

after 2009

• Extension of TM licence regularisation scheme

Infrastructure, projects and the environment nfrastruttura, proġetti u ambjent

Environment

• Completion of Family Park instead of Marsascala landfill (€6 m).
• Construction fo Civic Amenity Site for bulky rubbish and Pitkalija waste
• Plan to provide each household with water conservation apparatus
• €250,000 in favour of animal sanctuary

Infrastructure, projects and the environment

Agriculture and Fisheries

• Government has already provided €400,000 in assistance to farmers as subsidy
• n price of animal feed
• Creation of joint fund between producers and Governmetn. When producers

register expected profit, a persentage is allocated to this Fund. Government contributes through the same amount. When producers do not reach these targets, parts of these losses are recouped throguh this Fund (€300,000).

• Provision of VAT exemption on diesel to fishermen
• nvestment of €3 miljun on a new fish Market in Marsaa

Infrastructure, projects and the environment

Agriculture and Fisheries

• €6 million over 3 years for investment in Marsaxlokk Port (construction of

breakwater and restoration of existing breakwater)

• In the eventuality of a closed season for fisheries, Government will compensate

financially for the closed season and by covering SSC contributions during this inactive period

Gozo

• Development of Local Employment Development Unit in Gozo to strengthening

work carried out by the ETC

• Scheme to support unemployed Gozitans
• Development of business centre for financial services and ICT companies.
• Development of Child Development Centre in Rabat to offer health and

educational services to children with specific needs

• Further investment in Gozo General Hospital. Provision of chemotherapy,

establishment of dementia unit, house for patients with mental problems and elderly night shelter

Gozo

• Continuation of infrastructural works at Zewwieqa and Citadella
• Continuation of international marketing campaign related to diving and

implementation of Diving Master Plan

• Introduction of domestic tourism scheme. Between November and February,

those spending a night in a licenced accomodation in Gozo will pay the same Gozo Channel tariff applicable to Gozitans.

• Reconstruction of Marsalforn breakwater
• Works on Marsalforn Waterfron and Xlendi Waterfront.

Education

Investing in our Children’s Education

• Education budget is increased by €12m to €390.7 m.
• Construction of new Secondary schools in Ħal Kirkop, Raħal Ġdid, Sta Venera

and Pembroke.

• Continuation of works on 20,600 square metre site of the former Pace Grasso

football ground in Paola to be converted in a Secondary school, resource centre for persons with a disability, a health centre and a parking

• Continuation of MCAST new Campus – first building expected to be completed

in January

• New ITS campus.
• Further investment at University of Malta, including continuation of works on

new IT centre

Education

Investing in our Children’s Education

• 19,000 students are receiving 23 million in stipends.
• Continuation of Get Qualified scheme which provides a tax rebate for students

paying to obtain their academic qualification

Education

Sport

• After the completion fo 33 football ground together with the MFA, 19 new

grounds will be developed in the coming months.

• New Rugby facility following transfer of Government land to Rugby Association
• Increase in vote to sport tourism

Education

Sport

• Se nikkumplimentaw l-iskema 20/20 għall-atleti billi nestenduha għall-kowċis

ukoll

• Skema biex aktar familji jagħmlu eżerċizzju fiżiku fid-dar tagħhom. Rifużjoni ta’

15.25% fuq il-valur ta’ apparat sportiv għall-użu personali fid-djar tagħhom.

Families and the social sector

Health Services

• A further increase in health expenditure of €38 million, to a total of €465 m.
• Extension of Pharmacy of Your Choice in order to cover remaining localities over

next Two years

• Roll out of IVF services in favour of eligible couples.
• Continuation of Oncology Centre works
• Increase in 6% on excise duty on cigarettes and 8% on tobacco

Families and the social sector

The social sector

• Expenditure on social benefits increases to €787 million, an increase of €37

million.

• All social benefits will increase by the COLA amount, ensuring that arouns

112,000 persons do not lose out on any benefits.

• Energy benefit: Gas price allowance to increase from €30 to €40.
• Since 2007, Government provided over €22.6 million in energy support benefits.

Families and the social sector

Pensions Reform

• Continuation of pension reform: contribution credits will be provided to parents

born between 1.1.52 and 31.12.61 that quit their job to raise their children. Since these parents will experience an increase in the number of contributory years from 30 to 35, they will benefit proportionally as those parents born after 1.1.1962

• These parents will benefit from credited contributions for every child, and in

case of children with disability will receive two years ‘contributions should the parent (mother or father) had quit their job to raise their children and eventually returned to work as is the case for parents born after 1.1.1962.

Families and the social sector

Pensions Reform

• More forms of disability will be eligible for this pension.
• Introduction of one mechanism to determine whether a person qualifies for the

Special Disability Card or for registration with disability register at ETC

• Two married people with a disability that got married before Jan 2007 will be

entitled to same pension as those who got married after that date

Families and the social sector

Children

• Setting up of residential home to avoid separating siblings at cost of €300,000.
• Establishment of therapeutic facility that offers security to children with

behavioural problems (€400,000.)

• Support programme for youths exiting residential care in terms of provision of

temporary / permanent residence and assistance in this transitional phase

• Opening of 2 Accessi, in Gozo and Birkirkara €200,000.

Families and the social sector

Persons with disability

• Tax reduction for persons with a disability paying fees for residency services in

respite centres. This benefit applies to parents if they are responsible of such

• payment. Max deduction of €2500.
• Residence for persons with a disability with voluntary sector in Gozo.
• Extension of work scheme with local councils to cover NGOs and other

Government entities to create 150 more jobs for persons with a disability, 50 of which in Gozo.

Families and the social sector

Voluntary work

• Introduction of stipend for young people aged up to 25 or for those who up to

three years after graduating from tertiary education spend a year performing voluntary work with a €600,000 vote.

• SSC credits for young people performing voluntary work in Malta or abroad.

These credits will cover a period not exceeding 5 years since their return to the job market for more than five years.

• NGOs conforming with the NGO Act (2007) will be tax exempt
• Vote of €70,000 to the Council for the Voluntary Sector to support NGOs in

performing a number of projects in their area and scope of action

Families and the social sector

First-time Buyers

• First three hundred applicants will qualify for subsidised 2.5% interest rate on

bank loan for First 8 years. These will receive up to €14,000 in subsidy.

Families and the social sector

Elderly

• €300 allowance announced last year for persons aged 80+ is extended to those

aged 78+ and eventually to those aged 75+. 1.5 million euro vote per year.

• Full COLA increase to the elderly
• More investment in Elderly Homes through conversion of Casa Flamini in Paola
• Revision of Supplementary Assistance for those aged 65+ in cases where

household income is below the risk-of-poverty threshold, to ensure that this category is covered by a higher Supplementary Allowance

Families and the social sector

Pensions

• Service Pension initiative is continued through a further increase of 200 euro in

the exempted amount. In total the exempted amount as now reached €1,266 per year.

• Extension of Pensjoni tal-Wens to those not covered by this pension due means

test as well as to those leaving the job market and qualifying for social assistance.