Updated 10.20am

A PN government would spend €6 billion to implement its electoral manifesto, in a plan it says will generate direct and indirect GDP contributions of €42.6 billion by 2030, according to projections provided by the party.

The €6 billion in spending will be split into three components, from €1.8 billion on long-term projects to a €1.4 billion investment growth fund and €2.6 billion in what the party terms as incremental expenditure on areas like health and social measures.

The €1.8 billion spend on capital and long-term infrastructure projects will be 49 per cent funded by the EU.

Those figures emerge from a costings document published by the party early on Wednesday. 

The party’s headline proposal of creating 10 new economic sectors is expected to directly generate 32,500 high-value jobs, with an average salary of €43,000.

The investment fund that will be used to stimulate these new sectors will be funded by a mix of government allocations, EU funding and borrowing from the public.

These sectors range from digital games and AI to the metaverse.

Apart from stimulating economic growth, the new sectors are designed to ensure diversification of Malta’s economy.

According to the PN’s plan, existing sectors like online gaming and the financial services sector will also receive a boost that will see them contribute an additional €18 billion to the economy over an eight-year period.

The party says it is committed not to increase taxation ratios, social security contributions or any other taxes by stealth.

 Additional €2.7 billion in fiscal revenues 

Instead, the economic growth projected by its electoral plan will result in an additional €2.7 billion in fiscal revenues generated by the economic growth that will be stimulated by its plan. 

The party, which is trailing badly in the polls, pledges to ensure a smooth transition between administrations by adopting the current economic growth projections and the approved 2022 budget as its starting point for the costings model.

A render of the PN's trackless tram proposal, which will cost the party €2.8 billion.

It will also establish a consultative council, including constituted bodies and social partners, which will play a role in aligning government spending to priority areas, which the party says will reduce the room for short-term spending decisions.

Two reviews in 2022 and 2024 will be done, aimed at reducing discretionary and “avoidable” spending currently committed by the government by 3.5% and 2% respectively.

What about the trackless tram? 

A price tag of €2.8 billion had already been attached to the PN’s trackless tram proposal.

The party says part of this cost is included in the €6 billion spending plan when it comes to the infrastructural investments required.

The rest will be obtained through a combination of private sector and European financing.