Tonight’s is a budget that we drew up with the people. So it is the people’s budget. But it is also a Budget that has a strategic view that takes us in the long term. To have a Just Malta we are carrying out a policy built on the needs of the Gozdese and Maltese, on their aspirations. Therefore this budget is one: – To vigorously attack the cost of living and inflation and boost income of families, workers and the middle-class. – He is keeping stable the bills of electricity, water, gas, petrol and of diesel. – We are increasing the minimum wage. The Children’s is going from strength to strength Allowance. It is strengthening pensions again. This is another budget without any new taxes. A budget that is incentivizing tomorrow’s economy through a strategy towards new and productive sectors.
I understand well when I meet people who talk to me about the effects of inflation. The realities faced by pensioners and families. The middle class and the workers from every layer of our society. That was why we doubled the number of families that will benefit from additional cost of living grant. A year ago they benefited from this a grant that was given for the first time to 50,000 families. Today they will benefit 95,000 people. Families that are in a vulnerable state, but also families that are in the middle-class.
I give three examples: A pensioner couple on one minimum pension will get around three hundred and eighty euros. A family with one average wage, because one party decided, one of the parents decided to take care of the new child, she will take a sum of three hundred and eighty euro. Then a couple on one minimum wage and who have two children will receive seven hundred and sixty euros. This is from the additional mechanism for the cost of living alone. In addition to the all the other aids we mentioned tonight.
It was with this spirit that we took a strategic decision to help families and middle class with strength when we came to decide on the increase in Children’s Allowance. That we will do over the next three years as an addition in the Children’s Allowance, we do it almost all in one year. An increase of two hundred and fifty euros for each child.
We didn’t stop here. To this day, parents whose children turn sixteen, stop they get this allowance as long as they are not benefiting from the means test. Today we are making decisions that if the children continue to school after the secondary then the parents get a grant of €500 for three years. A grant another of €1500. That’s how it helps middle-class families. Education is fundamental and is the key to social mobility. We strengthened everyone’s pensions. You listen to the budget and notice how while the increase of €15 per week is eye-catching, the reality is that the a majority of pensioners will get more than that.
This is by the way we addressed certain anomalies, or we addressed certain realities. The widow’s increase for example is €17 per week. Persons who depend only on the pension of the twenty-five years of service in a body disciplined, for the first time, they will take bonus with full COLA. And the pensioners with an injustice before 1962 we started to address the embers theirs. And this is just to give three significant examples. In each of these measures I can see an individual.
If I mention the measure that affects service pensions I remember the talks I used to have with Martin, a person well known in the trade field unionist particularly of disciplined bodies, a person who militates well in Labor Party. I also remember that group of people who wrote to me constantly about the anomaly of 1962. And that woman I met at the Żurrieq market and she told me how necessary it is for someone like her, alone, for there to be specific and targeted help. Therefore I am very proud that we addressed the expectations of many people we spoke to in recent weeks.
A budget that was made in reality or in difficulties that are not easy at all. We have a world which is currently facing challenges that are not small. Start with the war that started in February 2020 on the outskirts of Europe, continue the war or fighting in the East Middle. And the Government had three options. Ignore it. Sees who to blame. Or roll up your sleeves and throw all the support behind families and businesses. The third option was the natural one that stems from our belief that we are with people.
From the first of January the minimum wage will also increase by €21 per week. This was a clear promise in the Electoral Manifesto. Satisfied that we fulfilled that promise. We brought unanimity around the table between employers and unions that represent the workers. We will have four consecutive increases and there is no doubt that this will also have a positive effect on other workers. As always, we will ensure that the minimum wage is not taxed. Like we will not tax a cent from the sharp increase that will be given to the pensioners.
Therefore a worker who does not retire after the age of sixty one can enjoy the improvement of almost thirty percent in the pension. We will re-establish a Trades Institute to give new impetus in areas technicians. We have improved the stipends for everyone, in particular the stipends in those sectors where the country needs for Malta’s economy of tomorrow. This is how we believe we will help young people find a quality career and industries to find the workers they need. But our policy remains a policy that goes looking for opportunities for our country. Because to support everything I talked about earlier we need the economy to grow and grow in a sustainable way.
Therefore our businesses will help them continue to invest. We will continue to simplify the bureaucracy, especially for small enterprises and for start-ups. In the budget we have allocated sixty million euros so that our country remains at the forefront in industrial development. We also talked about the change in our taxation system. Many businesses were worried that international pressure could lead to the changes we make will be detrimental to them. It will not be the case.
We will be introducing a new taxation system that will incentivize those to invest in capital, technology and their workers conditions. These incentives will be for all businesses and not limited to groups particular as it happens under the present system. We need a bigger investment to fulfill two big challenges, either otherwise great opportunities that the country has in front of it, the environmental core and the digital one. The Government will do its part. We will be continuing with the largest public investment program in history. For another year we will again invest more than one billion euros. In projects like waste-to-energy.
Like the second interconnector which must be ready by the year 2026. Like the unprecedented improvement in the electricity distribution system. Projects that will further digitize the public sector and assistance to businesses private. We have announced around one hundred million euros in assistance that they can enjoy the businesses.
As well as our commitment to more open and green spaces. We have carried out projects on existing or new spaces as much as six and a half times national stadium of Ta’ Qali. Now we have launched projects with twice the impact of this. Eighty thousand square meters for our families. In sixteen localities around our country. From Ghajnsielem to Żurrieq. We promised that no one would be ten minutes’ walk away from a green space or open, and that’s what we’re going to do. The same as we will start work on another main proposal of the Manifesto Malta Together.
The one to launch a plan for socio-economic regeneration. But we will not focus only on regenerating the environment and infrastructure of our country. We will continue with the strong investment in health and education. Allocation of almost eighty one million euros for investment capital in public health. 9 Double what we were allocating before the pandemic broke out. And in the field of education and sports, the investment will reach almost the ninety million. Because we will continue to invest in the schools of the future. We had the opportunity to show to the President of the European Commission what we are doing in the field of education in our country. We will do all this while improving the state of public finances.
We will do this without austerity measures. Our formula will remain that of sustaining economic growth while we care about people. Tonight I am satisfied that we presented a budget that was drawn up by the people, for the people. But not only that, we presented a strategic vision that takes us to the decade coming from 2024 for the next ten years, but a clear vision is needed we make decisions that are sound but we will be seeing the fruits theirs in the coming years.
A budget that is: Fair to the students. Fair to the families. Fair to the pensioners. Fair to businesses. Fair to employers. Fair to the workers.
Tonight we presented a plan for a Just Malta.
