Edward Scicluna to present first surplus budget in decades

Edward Scicluna will make a historical contribution when he delivers his sixth budget tonight since the Labour Party returned to power in 2013.

The Finance Minister will present the first surplus budget in almost four decades, a feat that has eluded his seven predecessors.

The last time public finances registered a surplus was in 1981 when Dom Mintoff was still prime minister and entering his third and very tumultuous last term in office. After that the country has had to contend with yearly deficits that contributed to the almost six billion euro in public debt.

Public finances did turn up a surplus last year in what turned out to be a better than expected performance. Scicluna had not budget for a surplus but a gradual reduction in the deficit.

#MaltaBudget18 will be about our common, bright future -JM #WeNowLook2TheFUTURE pic.twitter.com/XWdDP27QzD

— Joseph Muscat (@JosephMuscat_JM) October 9, 2017

The feat is likely to be repeated this year with figures from the National Statistics Office showing a surplus of €31 million in government’s consolidated fund for the first eight months of 2017. Again, this is better than expected as Scicluna had budgeted once more for a further reduction in the deficit.

So when Scicluna stands up in Parliament to deliver Budget 2018 tonight, he is expected to present a financial plan that will cater for a surplus in public finances for the first time in 36 years.

Buoyed by economic growth that has outstripped the euro zone average, the minister is expected to emphasise spending on improving the country’s transport and waste infrastructure.

Prime Minister Joseph Muscat on Sunday said 70 per cent of the budget will reflect commitments made in the Labour Party’s electoral manifesto.

It remains unclear whether the key pledge to introduce income tax refunds for all will start being implemented from next year though.

MaltaToday will be live blogging Budget 2018 tonight from 6pm onwards. MaltaToday will also be publishing a special budget edition tomorrow.

Why is this Scicluna’s sixth budget?

Edward Scicluna delivered a budget in each of the previous four years but in 2013, he actually presided over two budgets.

Given that the last budget of the outgoing Nationalist administration was not approved after Franco Debono voted against, soon after the March 2013 election, Scicluna had to deliver a budget to patch up what could have turned out to be a financial emergency.

His first budget in April was a retouched version of the financial plan his predecessor had presented the previous November. Scicluna’s very first budget that started implementing the Labour Party’s electoral programme came seven months later.