In a recent study, three Central Bank economists concluded that, compared to 2023, when most pensioners ended up either with a stable purchasing power or with a reduction, in 2024 all pensioners will be better off. A recent Central Bank of Malta study looks at how the recent surge in inflation impacted lower-income households. Three economists first define a new measure of inflation which is calculated based on the actual expenditure patterns of low-income persons and of retired...

The higher minimum wage will benefit not only those earning that wage but many others too. A recent study by the Central Bank of Malta indicates that the improvement in the minimum wage will benefit not just those workers who currently earn this wage, but many others as well. The study focuses on the increase that will be given as from this month and notes...

Government starts implementing landmark Budget 2024 social measures, enhancing pensioners’ welfare and addressing historic anomalies. December 2023 saw the implementation of some of the major social measures announced in the Budget for 2024.  This included: – payments under the additional mechanism against inflation, which ranged between €100 and €1,500 per year; – the first tranche...

The rollout of Budget 2024 measures has given households a significant boost in purchasing power and lifted hundreds of children out of the risk of poverty. Just a week after nearly 93,000 families received close to €15 million through the revised additional mechanism against inflation, yet more money has been channeled to boost people’s purchasing power. This time round, families will be receiving over €19 million, which...

The revised additional mechanism against inflation starts to kick in. More than four out of 10 families in Malta will qualify for the benefit. Almost 92,500 families have received the first of two additional cost-of-living benefits that they have become entitled to as a result of the Budget 2024. This payment, which covers the period from 1st January to the end of June, will put almost €15 million in the...

A look at conflicting versions of the PN’s migration policy: doubling the non-EU workforce versus the expulsion of all non-EU workers. In his reply to the Budget Speech this week, when he was expected to give the details of his “economic vision”, the Leader of the Opposition failed to mention any numbers. Perhaps he was cautious following his huge gaffe that ten billion means one thousand million,...

The Opposition's claims that Budget 2024's capital expenditure allocation is not enough are contradicted by the facts and figures. The Opposition has criticised the Government because, it argues, the allocated capital expenditure in Budget 2024 is not enough. In reality, next year the allocation for this purpose is €905 million. This is well above the historical average and almost...

“The Prime Minister showed great statesmanship when keeping true to socialist principles, instead of adopting an anti-foreign rhetoric. We all know what happened to the UK after Brexit. People were fooled into thinking that immigration would be stopped but today there are many more immigrants in the UK than before Brexit. That is exactly what would happen if Bernard Grech and his lot are let in Castille.” A comparison of Robert Abela’s and Bernard Grech's speeches on Budget 2024 Earlier this week, both Prime Minister Robert Abela and Opposition Leader Bernard Grech gave their take on Budget 2024 in comprehensive speeches in Parliament. The only thing in common between the two speeches was their length. Aside from that, the contrast could not...

How do the improvements given in Budget 2024 compare to those in previous budgets? Is Budget 2024 more generous than its preceding budgets? In this article we will look at four representative examples and compare the improvements given in Budget 2024 with those in last year’s budget and the ones in the preceding legislature.  Legislature...

The European Commission did not send Malta a letter asking for further explanations of the plan on 27th October, as it did to many other Euro area countries. As part of the Stability and Growth Pact – a set of rules designed to ensure that countries in the European Union pursue sound public finances and coordinate their fiscal policies – each and every government of Euro area country must send a Draft Budgetary Plan to the...

What the PN is saying vs the real facts and figures. Fact-checking 10 PN claims regarding Budget 2024 What the Nationalist Party is saying  The real facts and figures    The national debt is growing out of controlNational debt in 2012 was almost 70% of GDP; now it is 53%A year ago, the Minister for...

Understanding the additional mechanism against inflation: While the standard COLA is an addition to wages and social benefits, the additional COLA is a benefit in its own right. Its calculation, although somewhat inspired by the one underpinning the standard COLA, differs in important respects. It’s always a good idea to double-check one’s facts before publishing anything. In its editorial, The Malta Independent on Sunday implied that the fact that the number of beneficiaries of the additional cost-of-living adjustment (COLA) mechanism introduced in...