Voice of the Left questions feasibility of government’s budget measures

Left-wing thinktank Zminijietna has questioned the sustainability of the government's regressive tax policy and called for the government to exercise caution to maintain egalitarian and universal public services.

As expected, Monday's Budget saw Finance Minister Edward Scicluna announce income tax cuts for those who earn less than €60,000 for single, married and parent computation.

 The measure which is set to cost the exchequer €13.2 million has been seen as a bold and risky move by critics, particularly by Zminijietna and Alternattiva Demokratika, who had previously dubbed the measure as unsustainable.

 "Reducing the income tax bracket for the well-off can put Malta's financial sustainability in danger. This measure is worry as it puts the welfare state in danger, particularly pension schemes."

 "It is unclear whether the government's socially regressive tax policy is sustainable to maintain egalitarian and universal public services," Zminijietna stressed.

 Amongst the measures to be introduced during this fiscal year, Edward Scicluna announced free child-care centres, incentives for more people to enter into the labour marker, tax benefits for first time buyers and increase in social benefits.

 While stating that the measures are a step in the right direction towards achieving greater equality within society and towards reducing a culture of dependency, Zminijietna voiced its wariness to the measures. 

 On the other hand, the left-sided political group expressed its disappointment in the measure that excludes the IVF service being universally accessible.

 "With regard to education and employment, Żminijietna welcomes the increase in public investment in education and the increase in stipends. Moreover, the party welcomes the increase in minimum wage and incentives for more persons to enter into the labour market."

 Zminijietna also praised the government's proposed reduction in energy prices but renewed its call for the government to shift to renewable energy sources.