Consistent economic growth result of more disposable income, incentives to work

The consistent rate of economic growth registered by Malta was the result of increased disposable income, incentives to work, support for businesses and a government open to investment, according to Finance Minister Edward Scicluna and Economy Minister Chris Cardona.
Addressing a press conference on budgetary measures helping families and businesses, the two ministers reiterated that Budget 2016 generated positive feedback.

"This is not due to just the budget itself but also thanks to this government's business-friendly track record. You can work with us and we are giving space to so many projects that they couldn't all fit in the speech," Scicluna said.

He said that the government was moving taxes onto consumption, to claw back government expenditure resulting from negative externalities.

"I didn't invent excise taxes myself. Take fuel, alcohol and tobacco: excise tax is an extra tax over and above the VAT. Society sees the extra costs these products put on the taxpayer," he said, adding that the government was still reducing the price of fuel.

Scicluna added that this wasn't the right time to introduce second pillar pensions:

"Although the rate of employment is increasing, we need more. Introducing second pillar pension would hinder this growth."

The Economy Minister said the government was strengthening the middle class, as pledged in Labour's electoral manifesto.

"The budgetary measures should not be seen in isolation: past measures resulted in increased disposable income which resulted in increased retail and  local consumption. Statistics show increased commercial activity, new work opportunities and further foreign direct investment " Cardona said.

He praised the "hard working families and Maltese investors" as the cause of the successful results. "Foreigners investing in Malta is a show of trust in Malta," the minister added.

According to the minister, an average of 17 jobs are created daily.