7 - 13 September 2000

Budget to focus on enforcing tax collection, reducing expenditure

by Ivan Brincat

The Budget for 2001 will focus on enforcing the collection of tax dues and decreasing government expenditure, Finance Minister John Dalli said yesterday.

Speaking after a meeting of the Malta Council for Economic Development, Mr Dalli said the government would look at ways

to better enforce tax collection while controlling and decreasing expenditure.

He described the meeting as "very productive", adding that he was happy with the outcome of the meeting.

"We had a very serious discussion across the table in which we discussed the current economic situation and then the social partners gave an overview of their position," Mr Dalli said.

All the parties at yesterday's meeting agreed to continue with extensive discussions on the next budget.

Despite exorbitant increases in the international price of oil and the impact this could have on the local economy, MCED chairman Prof. Edward Scicluna said the issue was not on the agenda and had not been discussed during the meeting.

He did not rule out the possibility that the issue could be raised at a future meeting. "It should not be excluded," Prof. Scicluna said.

Prof. Scicluna also described the meeting as positive and the social partners had made progress in their talks.

"Everyone gave their views during the meeting on how to proceed. We have also highlighted areas where more discussion is needed. In October, there will be a series of intensive meetings in preparation for the budget."

He said the meeting also dealt with practices and procedures which have to be changed and also studied. Very few details of what was discussed during the meeting which lasted four hours were disclosed.

UHM President Gejtu Tanti said the UHM had always insisted that there should be consultation meetings before the budget. "We have made our proposals, all of which help to solve the deficit problem. The UHM believes that those who earn most should pay the most taxes," he said.

On the other hand, Mario Cutajar, deputy secretary general of the General Workers' Union also billed the meeting as positive for the GWU but for different reasons.

Mr Cutajar said that the meeting confirmed how wise the GWU was to persist in its petition.

"We have stated our position, but the longer it takes for the government to take note, the worse off our economy will be," Mr Cutajar said.

He said the public should show its force by signing the GWU petition. Mr Cutajar noted that the government had not adopted the GWU's proposals and said the union was monitoring what was happening.