A budget of firsts

The second budget speech of the 10th legislature that began after the April 2004 general elections was delivered by Prime Minister Dr. Lawrence Gonzi, who holds the portfolio of Minister of Finance, on Wednesday November 24 2004.

It was the first budget presented by Prime Minister Gonzi after he was appointed earlier this year and the first budget for Malta as a full member of the European Union.

In his speech Prime Minister Gonzi announced a deficit of Lm93.926 million for 2004 and deficit of Lm 76.1 million in 2005.

In the run-up to the budget speech, Prime Minister Gonzi has hinted at the general direction of his forthcoming budget, and in some ways he kept his promise. The budget did propose initiative on the education sector and environmental issues, as well as more measures directed against fiscal control. The expected increase in electricity and water tariffs was capped at 17%, while other increases were also announced, including an increase in public bus fares, kerosene, cigarettes, mobile phone use and taxes on outbound tourism and insurances.

A cost of living-related increase in wages of Lm1.75 a week was also announced.

Once again, MaltaMedia is bringing you highlights from the build-up to the Finance Minister's speech in Parliament as well as reactions from across the country, in the aftermath of Budget Day. The budget speech in its entirity is available below. You can also discuss this year's budget on the MaltaMedia Forum.