[LIVE] Budget 2013 • Tax cuts for higher earners • Franco Debono says he received death threat

21:23 Care Allowance to replace social assistance pension for old-age or other carers who have stopped working; from 1 January, if a spouse is in residential care the other spouse will take 70% of its pension (whereas before it was 60%).

21:21 Supplementary assistance to be reviewed for pensions aged over 65, in cases where family income is lower than national mean level and family is at risk of poverty, rising by €100 annually - at a cost of €1.2 million.

21:20 €300 increase to 13,000 pensioners aged 80 living independently in their residences to be extended to those aged 75 years by 2014. Measure will address 78 year-olds in 2013 at a cost of €1.5 million.

21:18 Anomalies in service pensions to be addressed, to generate €200 increase to current €1,266 in service pension.

21:05 Reporters Miriam Dalli and Karl Stagno Navarra are at the House of Representatives: they say that work is already in progress for the press conference by Opposition leader Joseph Muscat, who will have a teleprompter as technical staff testing eye-view level prompter.

21:00 Disability As part of the ongoing pensions reform, Budget 2013 introduces a measure whereby parents who were born between January 1952 and December 1961 will be given a year's accredited contribution per child, or two years in case of a child suffering from disability - so long as the parent will have had to leave work to care for the child.

Additional measures include a strengthening of the human resources made available to the Me2 Co-operative, which aims at reintegrating persons with special needs in the labour market.

Fenech announced that an existing scheme that employs 80 disabled persons with Local Councils shall be extended to the voluntary section and other government entities, wiuth a view to creating an estimated 150 jobs for disabled persons in the community. Fifty of these jobs will be based in Gozo.

20:56 Social services Government will be increasing expenditure on social benefits by €13.7m for a total of expenditure €787 million. Such services will be increased in step with future rises in the Cost of Living Adjustment mechanism.

Changes have been effected to the national Disability Pensions programme, so that beneficiaries can continue working at minimum wage without forfeiting their pension.

'Child-in-Care' benefits, covering children in social institutions or fostering, have been increased to €70 a week.

In recognition of the difficulties faced by families to meet their energy needs, government will increase subsidies for gas from 30 to 40: an initiative that will cost €300,000 and is expected to affect around 26,000 families.

20:53 Health Next year's health expenditure shall be raised to €465 million: an increase of €38 million.

Chronic ailments now eligible for free medication has been radically increased, in a measure that is expected to reach over 100,000 people and provide more than 1,300 additional pharmaceutical products for free.

A vaccine against cervical cancer will also be on offer on the national health programme.

In terms of preventative medicine, Fenech announced a 6% increase in tax paid on cigarettes, while tax on other tobacco products will rise by 8%: both measures aimed at abating the harmful effects of smoking by discouraging consumption

20:46 15.25% refund on sport equipment used for personal fitness in residential homes.

20:43 €120,000 allocated in financial aid for youth groups.

20:36 Increase in supplementary stipend of €300 annually - cost to the exchequer €400,000; personalised assesment for disabled university students; €130 million MCAST campus to be partially ready by 2013; 2,000 scholarships given in the past five years; €7.6 million in tax credits under Get Qualified scheme for 2,000 students.

200,000 graduates in the last four years from University, MCAST and ITS - 93% managed to find employment, well above the 76% EU average. Over 19,000 take €23 million in stipends.

20:33 €12 million increase in vote to €390.7 million for education.

20:32 €130 million in new schools and refurbishment: five new schools opened in this legislature, and new secondary schools planned for Kirkop, Paola, Santa Venera and Pembroke, with two resource centres for disabled students in Hamrun and Paola.

20:31 Education Three new childcare centres in Zurrieq, Gzira and San Gwann, and 30 new after-school centres by 2013 for 3-16 year-olds.

20:25 GOZO • Tourism New scheme (in collaboration with the Gozo Tourism Association) to incentivise domestic tourism towards Gozo between the months of November and February of every year.

Every one who goes on holiday to Gozo and spends at least one night in a licensed touristic accommodation will pay the same ferry price as a Gozitan resident. €200,000 will be allocated towards this scheme.

20:23 GOZO • Job Creation Efforts to continue so that more government departments, authorities, and entities transfer part of their offices to Gozo.

New scheme whereby Gozitans registering for unemployment will have the opportunity to receive job training for a definitive period. This scheme is expected to affect around 200 people and will mean a net expenditure of €1.1 million.

Investment in Education Government said that it remains committed to helping Gozitan students by cushioning the impact of accommodation and other costs related to their studies in Malta. To this end, Gozitan students attending courses in Malta, both in University and other institutions, will benefit from €400 every three months.

20:18 Agriculture and Fishing Government announced that it will start a Fund that will receive contributions both producers and government. According to the scheme, when a producer would be making the expected profit, a percentage of that profit would go into the fund, with Government matching that amount. However when a producer would be making a loss, he or she would be able to make good for that loss by means of the fund. The scheme is estimated to cost €300,000.

New scheme whereby to even out the imbalance created by how some farmers receive water from the Water Services Corporation, while others draw water from the water table. Government said that this scheme will mean that the costs that farmers drawing water from the Water Services Corporation are spread out.

Further €4 million towards the improvement and modernisation of the Pitkali facility infrastructure, as well as the system used for the buying and selling of products.

Government also said that over the coming year, the Marsa Slaughterhouse faculties where pigs are slaughtered will be modernised.

With regards to Fishing, government announced that it plan to allocate over €6 million over a period of three years for the purposes of investment in the Marsaxlokk port - which will include a new breakwater, the restoration of the existing breakwater, and the construction of other necessary facilities.

Government also said that it will uphold the existing VAT exemption assistance to fishermen when these buy diesel for the purposes of fishing, which began in 2012.

New administrative scheme whereby fishermen receive financial assistance to make good for the closed fishing season, so that these can keep paying Social Security contributions throughout, since self-employed fishermen are unable to receive unemployment assistance during the closed season.

The financial assistance is as follows, depending on the length of the closed season: 4 weeks: €164,920, 6 weeks: €247,380, 10 weeks: €410,300, and 13 weeks: €535,990.

Animal Welfare

Government said that next year, a new dog park will be opened in the Wied il-Ghajn Family Park and, along with NGOS, will carry out a neutering campaign for stray cats and dogs.

€250,000 will also be set aside towards assistance for animal sanctuaries.

20:16 Waste Management Government announced that a Civic Amenity Site will be built in Ta' Qali that can cater for bulky waste and also waste generated by the Pitkalija. This facility will ensure that material that is declared 'refuse' by the Pitkalija is processed and weighed, to reduce abuse and protect farmers.

Plans to rehabilitate closed landfill sites. As part of the rehabilitation in Qortin, Gozo, Gozo said it will install a system of photovoltaic panels on 6,000 metres squared of land, which will accommodate 2,400 panels and generate 850,000 units of clean energy.

With regards to the Maghtab landfill site, Government announced that the on-going project to generate gas from toxic gases will be completed by the end of 2012, and will result in a park of approximately 300,000 metres squared.

Water conservation in homes Government said it is working on plans so that every house benefits from apparatuses that reduce water wastage by means of devices that are fitted on on water taps.

Government also announced a scheme whereby residences in urban areas may apply to have their well repairs, or for the installation of a plumbing system for second class water. €150,000 will be allocated towards this scheme, and each applicant will be refunded 50% of expenses, to a maximum of €1,000.

20:12 Malta Developers Association gives thumbs-up to Budget 2013

20:10 Transport |  Government said it will reduce the registration rate for Euro Standard 5, up to a maximum of 30%.

• Government also announced that it will grant €500 to buyers of commercial cards or vehicles that are of the N1 category who also scrap an old vehicle of the same type. Government said that it will be allocating €500,000 towards this end.

• Registration tax on Euro Standard 4 vehicles is being increased by an average of 10%.

• The minimum registration tax for vehicles imported from outside the EU, are at last five years old, and have an emissions grade of at least 130g/km carbon dioxide, will be reduced to €1,000.

• Licence fees on vehicles which have a high emissions grade will be capped so as to limit the burden imposed on such vehicle owners.

• The tax rate for commercial vehicles falling within the N1 category by 12.5%.  The measure will also provide larger incentives to companies and self-employed to enable them to buy more modern commercial vehicles..

• Registration tax on motorcycles with engines of 250cc will be removed.

• Registration tax on motorcycles with bigger engines will be reduced by 25%.

• Cars that are classified as Classic, Vintage, and Veteran, the Government announced that it is removing registration tax for vehicles which are 50 years old, or older.

• It also announced that the minimum age for vehicles to be classified as Classic will be reduced from 35 years to 30. The licence fees for such vehicles will be removed, and replaced with an administrative fee of €8 per vehicle.

• The changes in registration rates will come into force as from 29 November 2012.

• To encourage vehicle owners to convert their vehicles to run on autogas, the Government announced that it will provide a refund of €200 on such conversions. The scheme will run from 1 January 2013 to 31 December 2013, or until 1,000 individuals benefit.

• For those owners with vehicles already running on autogas and which were registered on 1 January 2009 or later, the registered level of carbon dioxide will be reduced by 10%, and will be reflected in the licence fees paid by them. This will come into effect as from 1 January 2013.

• The Government also announced that it will extend its existing scheme whereby those owing licence fees can regularise themselves with Transport Malta. This will now run to 31 December 2013.

20:02 Scheme for those wishing to restore residential properties in towns and villages - for properties Graded 1 or 2, or are in UCA, a refund of 25% on restoration expenditures will be given, to a maximum of €5000. For Valletta properties, the refund percentage stands at €30.

• A similar scheme for non-governmental organisations that wish to invest in their properties. Those NGOS restoring properties Graded 1 or 2, or are in UCA, will benefit from a refund of 25% on restoration expenditures will be given, capped at €2,500.

• Individuals and companies purchasing properties in areas outside UCA for the purposes or restoration and development, according to the conditions established by MEPA, will benefit from a reduced rate of 2% on property tax.

• Government said that tax credits amounting to 20%, capped at €200,000, will also be granted on expenditures that qualify for this restoration and development.

• Certain types of developments that conform to the parameters established by MEPA's master plans will be exempted from paying for permits, and - in certain cases - can qualify for a fast track development notification order procedure. The zones identified for these schemes are Albert Town, the Menqa Opportunity Area in Marsa, parts of St Paul's Bay, and the Cawla area in Rabat, Gozo.

19:59 Government increasing the fund allocation to Local Councils by €1 million, increasing the total allocation to €32.4 million. Next year, the Government will start restoration on parts of the Isla fortifications, and the reconstruction of collapsed parts of the Vilhena Palace in Mdina, while the Salini rehabilitation will be completed - an investment of €7 million. Work is on-going and more contracts are being issued for the completion of more roads.

The paving works in 20 streets in Valletta, and the tunnel in Qui Si Sana, will be completed.

19:56 To finance the clean energy schemes, Government will increase the rate of excise tax of fuels by 2c per litre, and by increasing the tax on cement by €5 per tonne.

• Government in negotiations with the European Union so that, in the 2014-2020 Programme, there would be substantial financing so that Malta can be included in the European gas pipeline.  Such a project would also permit us to invest in a system for household gas supplies.

• "We are committed to not raising the water and electricity tariffs, even if the price of oil is high and Enemalta is struggling to make good for the difference in price."

• Government will allocate €25 million towards the eco-reduction and feed-in tariffs.

FEED IN TARRIFS - will be introduced for those who are not receiving assistance by some form of financial grants on capital as follows:

-       installations of at least 1MW on roofs: 18c/kWh for 20 years.

-       installations of at least 1MW on land: 17c/Wh for 20 years.

-       Installations of over 1MW on roofs: 17c/kWh for 20 years.

-       Installations of over 1MW on land: 16c/kWh for 20 years.

Those with installations under a preceding scheme will have nothing changed from their previous schemes.

Government financing a scheme whereby families that cannot erect panels on their roofs can invest in a bigger system beyond their own homes - they can benefit from clean energy generated depending on how much they invest in this common system.

Government will extend the scheme that grants back 40% of people's expenditure - to a maximum of €400 - on any water heaters bought, and also that scheme that refunds 15.25% (to a maximum of €1000) on the installation of double glazing apertures and other insulation and efficiency in energy-use.

19.53 Increase in minimum children's allowance from €350 to €450 for each child, to target 20,400 families; and an increase of €177 annually over the €1,155 for children whose parents are on minimum wage - 1,110 families to benefit.

19:50 This income tax widening is the singular coup of this 'electoral' budget: those who earn some €45,000 will get a €500 tax cut in 2013, and €1,500 in 2015 - in a sense this is the PN electorate; there was no widening of tax bands in the lower income groups.

19:46 TAXATION "The most important measure government had proposed was to reduce income tax. In the three years coming, governmen is widening tax bands for single, joint and parent computations: in 2013, those earning between €19,501 and €60,000 will pay 32% tax, down to 29% in 2014, and 25% in 2015.

19:44 2,400 parents enjoying reduction of up to €1,300 in income tax for childcare expenses; 55,000 parents enjoyed €10 million in tax reductions through the 25% tax band.

19:39 Active Scheme will be given 20-hour work experience in sector that matches youths' profile, payable with a pro-rata benefit; Unemployed youths will be given choice to open business or join cooperative, and receive basic training and mentoring, start-up grants, and reduction in national income contribution payments for those who employ more than three. Increase in apprentinceship stipend from €86 to €95 - total spend of €1.5 million.

19:35 PROPERTY Highly Qualified Individuals and High Net Worth Individuals schemes led to the sale of 690 properties sold to foreign tax exiles, for a value of €105 million between January and October 2012.

• Government will increase the seven-year period for the 12% final withholding tax on property sales, to 12 years.

• Administrative reform on architects' valuation of properties: bank's architect's valuation will be added to state's valuation of residential property; for properties over €250,000, vendor and seller will be able to get State architect's valuation before signing promise-of-sale, so that property duty estimate can be set, but this will be valid for six months.

• Removal of inheritance tax on properties or donated properties from parents to children, starting from 2013; ceiling for 3.5% property tax for first-time buyers increases from €116,000 to €150,000.

19:32 Malta has 5,830 ships and superyachts on its register, generating €12 million in fees. "The government is looking towards the Marsa ex-shipbuilding site to create a maritime park, with plans for the 172,000 square-metre area to be finalised in 2013."

19:32 €17 million in investment towards Safi Aviation Park - 104 planes on Maltese aviation register, a 21% increase over 2010.

19:30 Arts and culture | €17 million in funds towards investment in cultural and creative economy. "Valletta 2018 will be one of our priorities for our culture and creative economy strategy."

19:29 New rates created for Gozitan operators who rent short-let property to Maltese, costing €250,000 to exchequer.

19:23 New routes in Spain, Ireland and Israel being sought, and €40 million will go to Air Malta from the 2012 spend.

19:22 Tourism: allocation for the MTAwill be €37 million, an increase of €12.5 million over 2008. Tourism arrivals increased by 13% in the past five years, and a record year for cruise liner passengers in 2011.

19:16 More on the EC's in-depth economic review from the official Commission website.

Olli Rehn, Vice-President for Economic and Monetary Affairs and the Euro, said: "The EU is going through a difficult process of unwinding macroeconomic imbalances that built up in the decade before the crisis. A lot has already been achieved and reforms are bearing fruit. But the rebalancing process is far from complete and will shape the economic landscape for several years to come. Through the Macroeconomic Imbalance Procedure, the Commission provides guidance to Member States to ensure the adoption of adequate policies to tackle imbalances and lay the foundation for sustainable growth and job creation."

19:13 Microinvest scheme for businesses helped 1,700 businesses take €11.5 million income tax reduction on investments made. Scheme will be extended to two more years for companies which employ 30 or more workers. Malta Enteprise will launch B.START scheme for a maximum of €30,000 in capital investment for new enterprises, through crowdfunding.

19:09 €6 million was dished out from the national research and innovation fund to 45 projects, apart from €13 million to 125 financial projects from the FP7 programme. €1.6 million is being allocated for research and innovation.

19:09 LIQUIGAS statement: Persistent upward trend in international prices affects LPG prices in Malta

"During the last weeks, the international LPG market continued to suffer from high prices. As a result, Liquigas Malta Limited announced an increase in the LPG prices effective as from tomorrow Thursday 29th November 2012."

"As from tomorrow, the full list of Liquigas prices can be found on Liquigas' website: www.liquigasmalta.com. Distributors of Liquigas cylinders are not authorised to charge additional prices over and above the above prices. Ends"

19:08 Fenech is going through the government's efforts in encouraging the digital games industry and the films industry, and has annoucned an increase in the rebate for film expenditure from 20% to 23%.

19:07 According to the Dow Jones newswires, the European Commission today designated 14 countries, including France and the U.K., as urgently needing an in-depth economic review. Malta and the Netherlands were the only newcomers to the process, part of a new system of economic surveillance prompted by the debt crisis. LINK HERE

"France made the list again, as did the U.K. The other 10 countries are Belgium, Bulgaria, Denmark, Spain, Italy, Cyprus, Hungary, Slovenia, Finland and Sweden. The commission said the 14 countries "face different challenges and potential risks."

Although its list has lengthened, it said countries are making progress in cutting their deficits, spurring exports and in other areas of concern. Such efforts are needed for lasting economic growth but will continue to weigh on growth and employment in several countries in the short term, the commission said.

19:04 "Government saved around 5,000 jobs in 15 companies during the recession; aid was given to some 200 companies hit by the Libyan conflict in 2011; Malta Enterprise will open a new office in Misurata."

19:02 Malta will not benefit from Objective 1 status funding by 2014, but Fenech says Malta will keep on insisting that the country's island-state status is addressed by the EU, saying the last proposal substantially improves Malta's final package from the EU multiannual financial framework.

19:01 "In the last four years we gvae out more than €200 million in tax credits that stimulated investment of over €500 million."

19:00 "The government is attracting new industries which work in the pharmaceutical, aviation and digital gaming sectors."

18:58 "With a Nationalist government, employers' and workers' peace of mind is guaranteed."

18:56 Labour has just published out some infographics from its therealbudget.com website.

18:52 "The economic sectors that registered improvement were those of financial services, IT and communications, professional, technical and scientific services, arts and recreation, as well as a record year for tourism."

18:51 "The eurozone economy as a whole will see a contraction of 0.4%."

18:50 "EU member states had to make new financial plans so as to return to sustainability... but a number of these countries had no other choice but to raise taxes, reduce public spending, even in the social sectors like pensions and workers' salaries."

18:49 "The financial storm is still raging and it looks like it is going to stay with us for some more time now."

18:48 Tonio Fenech starts off the budget speech: "The choices we made were not always popular, but yes, we made responsible choices."

Finance minister sounds excited ....must be his deputy leadership bid at the back of his mind #maltabudget — Stanley (@stanley_mifsud) November 28, 2012

18:41 If you are wondering why this was not broadcast on PBS, it is because filming only starts when the Budget speech is actually broadcasted. This is also the first time the budget will be broadcast in sign language for the deaf.

18:40 Franco Debono has just told the House that he recieved a death threat, specifically a shotgun cartridge in an envelope with the message: "Bring the government down and everybody goes down" - he has asked the Speaker of the House to investigate.

And FD is trying to steal his moment #maltabudget — Manny Borg (@Smarter200) November 28, 2012

18:38 Debono says again that he will vote against this budget, which means it will not pass. He has also claimed that his treatment at the hands of Fenech comes due to the fact that a member of his legal firm defended Noel Borg Hedley, Fenech's former private secretary who was convicted of accepting bribes, ostensibly as donations by construction firm JPM Bros to Fenech's electoral campaign.

18:37 Franco Debono is claiming he was insulted by statements expressed by Tonio Fenech on PBS's Bondiplus on Tuesday evening. Speaker of the House Michael Frendo has called Debono to attention on the breach of privilege he is raising, but Debono is now delivering his statement and taking on Fenech over statements he made referring to the decision by the PN executive to ban Debono from the electoral ticket.

18:36 Hello... this year's budget has started off with fireworks. Nationalist MP has just raised a breach of privilege against finance minister Tonio Fenech.

17:48 In the customary pre-budget press conference Tonio Fenech says that the Maltese economy is performing above the EU average and registered the seventh largest growth rate in the EU.

Fenech says that the 2013 Budget "builds upon the fiscal programme outlined by the last four budgets." He adds that the Nationalist government has outperformed its 2008 electoral promises.

16:53 A press conference by finance minister Tonio Fenech scheduled for 4pm has not yet started; journalists have been informed that the budget speech went to print at 3:30pm and that they will be given the Maltese version, but it is still in the process of being translated into English.

13:18 Here's an infographic tweeted on the Prime Minister's official account

Here's a list of all the taxes that this Government removed in the past four budgets. twitter.com/Lawrence_Gonzi… — Lawrence Gonzi (@Lawrence_Gonzi) November 28, 2012

12:31 And here's the debt ticker from Labour: http://www.therealbudget.com/tickers.php and some infographics:

12:28 If you have been following the news recently, you will know that Labour leader Joseph Muscat will be keeping the "framework" of the budget intact, that is, he will be keeping the good stuff. We wonder whether this will be a poisoned chalice for him. Here's a video of what Muscat said last week, with a relaxing background score to boot.

12:25 Francis Zammit Dimech, a former minister, is to return to the Cabinet to serve as foreign minister with the departure of Tonio Borg to the European Commission.

11:22 The Labour Party has its own budget website called The Real Budget, which you can also follow on Twitter and Facebook.

11:21 Here's last year's live blog on MaltaToday.com.mt

11:10 Maltastar, Labour's e-paper, says the budget will include a reduction of the top tax rate from 35% to 25%; "change" to students' stipends; confirmation of the €30 million subsidy to Enemalta.

11:03 If you like fooling around with numbers, here's last year's goodie-bag: The 2012 Budget Speech and Economic Survey and the 2012 budget estimates.

YESTERDAY The finance minister held his last consultation meeting with the Malta Council for Economic and Social Developments (MCESD). Right after the meeting, the social partners had a generally positive reaction, even though the General Workers' Union lamented that the majority of its proposals had not been included. The union now hoped that amendments to the Budget would include its input as well.

The social partners did however express one common concern: that of starting 2013 without an approved budget - a likely possibility given rebel MP Franco Debono so far insistent statement that he'll vote against the budget.

As Tonio Fenech put it this morning on television, "the budget will be government's political and social programme for next year".