Recently, Finance Minister Clyde Caruana revealed following this year’s budget, the government will spend around €608 million in subsidising energy and food prices next year. This figure will be around €135 million more than what the government spent this year.
Clyde Caruana also said that the government will continue subsidising food and energy prices until the crisis comes to an end. They will also aim to reduce a national deficit at the same time by the end of next year.
He had this to say “Last year I pledged the national deficit will be between 5.5% and 7% this year,”
“Despite all the government’s fiscal initiatives, wage supplement and energy subsidies, we will end this year with 5.8% deficit and despite a higher government expenditure next year, we will still manage to reduce the deficit even more.”
The minister also addressed concerns over the nature of the current government spending spree.
“I’m hearing many people say that all of these subsidies will probably vanish after the budget or after Christmas, and then the government will be forced to start curbing on its expenditure,” he said
He continued on by saying that it makes no sense to be spending this amount of money to mitigate the effects of the pandemic, only to stop now.
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