Budget 2023 at-a-glance: What's in it for you?

Finance Minister Clyde Caruana unveiled the government's budget for 2023 on Monday night.

A pledge to invest €600 million to cushion increases in energy and cereal prices dominated the headline measures, which were mostly focused on low-income earners, pensioners and workers battling to keep up with the rising cost of living.

Here are the key budget 2023 measures, broken down by theme:

Economy

New one-stop-shop to help start-ups establish themselves in Malta
A new business incubation centre
A €40 million fund for cash grants for small and medium businesses
Studies for the setting up of a venture capital fund
Rent subsidies for businesses
Social enterprises will be eligible for a tax credit of up to €70,000 over three years
Laws governing residency programmes to be reviewed and updated

Economic growth is expected to slow next year, Finance Minister Clyde Caruana said.

Workers & Parents

This year’s Cost of Living Adjustment (COLA) clocks in at €9.90 per week for employees, or €514.80 over a year
Public sector workers will get a top-up of around €3.50 a week
People on social benefits will also receive the cost-of-living adjustment
80,000 low-income earners to receive cheques to compensate for rising prices. The average grant will be €300
Annual tax refund to continue, with refunds ranging from €60 to €140
Children’s allowance to be increased by €90
Tax-rebate for parents who send their children to sports, arts or cultural activities increases from €100 to €300
Police and army officers to get 23% pension increase if they work four years after the 25-year retirement period

Parents will receive an extra €90 per child. Photo: Matthew Mirabelli

Property

A €10,000 grant for all first-time property buyers, payable over 10 years
Interest-free loans on 10% down payment to continue, with the maximum property value raised to €225,000
Previous property schemes, including tax breaks for buying old properties, and the first- and second-time buyer schemes to be extended

First-time buyers are to receive a €10,000 grant from the government.

Transport

Further electrification of bus fleet
Discussions on limiting the use of certain service vehicles during morning rush hour
Financial incentives of up to €12,000 for those scrapping a vehicle and buying an electric car
Electric and plug-in hybrid cars to be exempt from registration tax. They will also be exempt from license fees for the first five years
A maximum grant of €900 for the installation of PV panels on coaches and minibuses

Pensions and the elderly

100,000 pensioners to receive an extra €650 next year, amounting to €12.50 weekly
Widows and widowers to benefit from an additional increase reaching a maximum of €3.54 weekly
The taxable ceiling on pensions is being raised to €14,968, up from €14,318
Service pensions to be increased by €200
Pensioners who have not made all their social security contributions will benefit from a payment ranging from €450 to €550
A €1.6 million investment in a CT scanner and ultrasound machine at St Vincent de Paul
Tax breaks for pensioners who opt to continue working

The elderly are set for a significant boost in their pensions.

Education

Stipend increase based on the cost-of-living adjustment
Works to be completed on Ħal Għaxaq, Msida and Rabat schools, as well as on a new sports complex for the Santa Lucija school
Free fruit and vegetables to be distributed in primary schools
Year seven students to receive a free laptop
Scholarships and tax credits for those wishing to continue their studies to be strengthened
Works on new ITS campus at Smart City to begin
Talks to begin with educators on new sectoral agreement with educators

Talks will begin next year to improve teachers' pays.

Energy

An estimated €600 million subsidy to keep energy and grain prices stable
Further investment in Enemalta distribution network
Incentives for the installation of PV panels and heat pumps
Charging points for electric cars to increase from 340 to 1,200 by 2024

The government is set to continue its super subsidies on energy prices.

Environment

€700 million to be spent over seven years to implement the government’s greening projects
Consultation process for offshore wind farm
Multi-Material Recovery Facility in Ħal Far to become operational
€50 million project for organic processing plant
New gate fees to be introduced to help reduce the amount of waste ending up in landfills

Health

HPV vaccine for boys born after the year 2000
Medicines for people suffering from multiple sclerosis to be given for free
People suspected to be suffering from or diagnosed with cancer to receive necessary treatment within 12 weeks
Chemotherapy pumps for cancer patients to use at home
Oncology clinic within primary healthcare system
Long-term projects include new blood bank, a new outpatient’s centre at Mater Dei

Industry & Infrastructure

New plans for Msida creek project
Over the next three years, other major projects such as the Imrieħel Underpass and the airport intersection project will be continued
Dredging works in Grand Harbour to improve port infrastructure
Studies on land reclamation

Revised plans for the Msida creek project were announced ahead of the budget.

Disabilities

Grant for parents who opt out of working to take care of a disabled child will increase to €4,500 yearly, up from €500
People aged between 18 and 30 who spent time out of work due to mental health issues will be given up to two years of credits to cover lost social security contributions
Parents of a disabled child to receive €200 tax credit
Subsidies for the purchase of vehicles adapted for persons with a disability
Means testing for social housing will no longer include income government allowances

Arts & Culture

Authors to benefit from reduced tax rate of 7.5% on book sales and royalties
Works on crafts village in Ta’Qali to continue

Tourism & Gozo

An incentive scheme to encourage long stays in Gozo
Foundation for Tourism Zones to be transformed into agency
Gozo to receive €60 million for sustainable urban development