The Government’s budget for the year 2016 is characterised by an economic direction that empowers the weakest people in society. ASCS feels that a number of measures announced on Monday evening are a step on the right track with regards to the environment, education and employment. Notwithstanding, there are many areas that could do with improvement, and should be looked at in more detailed. A particular issue that merits some concern is the proposed tunnel between Malta and Gozo, which has the possibility of amounting to an unnecessary waste of public funds if the feasibility study is not carried out properly.
” ASCS is disappointed that yet again, research funding has not been marked as a priority.”
One of the policies that most impacts students is the stipend increase, which will be in proportion to the Cost of Living Allowance (€1.75) for 2016. While the increase is welcome, it is worth considering whether it might have been better invested in University by funding research. ASCS is disappointed that yet again, research funding has not been marked as a priority. Granting Study Leave to educators in order to further their professional development will certainly improve the quality of education Maltese students receive. The plan to open a school for 16 year olds who require further revision in the O level standard of education is a good initiative which promises to increase the amount of students progressing with their post-secondary studies. One cannot talk about student issues nowadays without mentioning transport, and in this regard it is a good move to make motorcycle licences cheaper. On another note, the government is not doing enough to tackle one of the biggest issues on this small island, being the problem of traffic.
“We believe that entrepreneurs should be the driving force of the economy…”
The trend towards environmentally friendly measures runs throughout the budget, no less through the employment side. ASCS applauds policies like grants that serve to encourage clean transportation and renewable energy projects. We believe that entrepreneurs should be the driving force of the economy and the Government’s decision to start providing more grants to small businesses and interest free loans to start-ups is an encouraging one. The income tax cuts, much promoted as the highlight of the budget, widen the tax free bracket and deduct the amount of tax paid in certain low income brackets. This is a positive measure that reflects the progress achieved in the Maltese economy. ASCS also believes that while the decision to create 500 work exposures and traineeships is a good one, it is yet to be seen how many University students will benefit and the Government must be held accountable to deliver this promise.
“…they might be seen as an increasing financial weight to society.”
With regard to the economic hot topic of pensions, the Government decided not to increase the retirement age or national insurance contributions. Pensions will be increasing on average €8 per week including a grant of €300 to those over 75 years of age. Even though this is a positive policy on behalf of pensioners, they might be seen as an increasing financial weight to society. Increasing pensions may not always be the best solution as it might discourage unemployed to seek work and low skilled workers to undergo training aimed at increasing their potential for adding value to the economy. The Government decided to increase the excise tax on cigarettes, chewing gum, plastic bags, bottles or cans of non-alcoholic beverages including water, cement, beer and other alcoholic beverages, petrol and diesel. Starting from January 2016 the price of fuel will again decrease, yet this is almost neutralised by an increase in the excise tax, as the Government seeks to balance the books.