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)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
