Malta’s budget for 2021, which was presented on October 19th by Finance Minister Edward Scicluna, focuses on the country’s recovery from the COVID-19 pandemic.
As a result of the Covid-19 pandemic, during 2020 the economic growth shrunk by 6.1% in nominal terms and 7.7% in real terms compared to that of the Eurozone rate of 9%. Finance Minister Edward Scicluna said when delivering the Budget speech, that the country’s debt-to-GDP is projected to increase to 55% next year.
Economic growth in real terms is expected to be around 5%. Total revenue for next year is projected to reach €5.2 billion. Revenue from tax alone is projected to increase by 12.5% on the back of economic growth. The total expenditure for next year is estimated to be €5.95 billion, which is almost similar to the 2020 expenditure level. Capital expenditure is expected to decrease by 20% to €793 million next year. Employment is projected to grow by 2.3%, while unemployment is estimated to be 4.0%. Inflation is projected at 1.3%.
Download our report for the main highlights of the budget.