Malta would retain budgetary surplus without the IIP scheme – Scicluna

Malta would still be experiencing a surplus even without the IIP scheme, Finance Minister Edward Scicluna said yesterday.

Presiding over a joint meeting between MEUSAC and MCESD to discuss the 2018 National Reform Programme, Scicluna stated that indications yet to be confirmed by Eurostat show that the current surplus has not been dependable on the rather controversial IIP scheme.

“This means the public sector alone without the IIP scheme is capable of producing a surplus irrespective of what is made from the IIP programme,” he said.

The IIP scheme was introduced in 2013 and has been criticised widely, with the government still not revealing the names of people purchasing Maltese citizenship.

The Finance Minister yesterday morning presented a draft consultation document, based on the publication of the European Commission’s Country Specific Report and how the government plans to address the recommendations made.

Scicluna said that spending reviews remained a challenge in times of such surplus and that control of the country’s exuberance is an important necessity.

The 2018 National reform Programme is carried out by all European countries with the meeting focusing on the macroeconomic results of Malta and future forecasts.

Statistics drawn up by the Finance Ministry revealed that private consumption has increased from 3.0% to 4.3% between 2013 and 2016. Unemployment has seen a healthy decrease from 6.4% in 2013 to 4.0% in 2017.

Forecasting for 2018 and 2019 shows that employment growth to is expected to decrease slightly from 3.8% in 2018 to 3.5% in 2019.

Scicluna noted that such statistics revealed positive labour market dynamics which have been crucial in Malta economic growth; adding that strong employment growth has produced historical low unemployment rates.