In a video uploaded to social media, Finance Minister Clyde Caruana said that the government will be using the €200 million budget aid to reduce costs caused by the Russian invasion of Ukraine.
During the announcement of the 2022 Budget, the government revealed that a sum of money was set aside to allow Malta to address any potential impact on prices increase. The amount daddies up to around €200 million, or 1.4% of gross domestic product.
Minister Clyde Caruana spoke on the impact which the invasion will have on the Maltese islands, saying that despite the attack seeing increased prices in products ranging from oil, wheat and grain, the government is taking action on reducing these prices.
Over the past week, the discussions about the invasion dominated over any other topic in the media despite an electoral campaign taking place in Malta. Caruana said that many expressed their sadness at the suffering of the Ukrainian people as hundreds seek refuge.
When there is a war, prices automatically increase. Russia and Ukraine also happen to be two of the largest suppliers in Europe when it comes to these products. Caruana explained the price situation by giving examples on fuel. He said that if the government did not intervene, everyone who currently owns a petrol car would end up paying an additional €5 per week to the €20 that people already pay. Others who own a diesel car would end up paying an additional €6 per week.
The measure, said Caruana, will help people meet the cost of living and, if the need arises, the government will not hesitate to implement the measure again.
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