State budget goes to Cabinet

The President’s Cabinet is taking on the budget during a meeting on Thursday, expected to approve a whole host of new construction projects for the upcoming fiscal year.

According to the government’s latest Strategic Framework for Fiscal Policy, the administration is rolling out a “new development model” encompassing a whole host of issues, from boosting development and entrepreneurship that includes a focus on tourism and shipping upgrades.

The policy also puts priority on modernising the state, with main priorities including the restructuring plans for local administrations and streamlining the justice system with a commercial small claims court.

The interim budget for 2019-2021 back in May was based on a 3.6% GDP for the coming year.

The new budget has a number of earmarks on road and urban construction projects in addition to last year’s allotted funds, calling for additional tens of millions of euros for new roads and other projects in more parts of the island.

State revenue is projected to fetch €6.6 billion in 2019, according to a macroeconomic scenario conceived by the Finance Ministry, showing a 3.9% increase compared to the revised 2018 revenue at €6.35 billion.

Spending is also going up, with the state budget allotting €6.25 billion for the year 2019, compared to €6 billion based on the approved 2018 budget, a 3.2% jump.