Budget 2022: New cost of living mechanism to be announced

As part of budget 2022, Finance Minister Clyde Caruana is expected to announce a mechanism to help the neediest in society with the rising cost of living.

The Times of Malta reported that the mechanism, which will compensate those most in need, will be over-and-above the cost-of-living adjustment mechanism.

Caruana had previously hinted at a new mechanism to combat inflation spikes.

However, while COLA adjustments are funded by the government and employers, the additional payment for low-incoming sectors will be paid totally by the government. 

On Sunday, Prime Minister Robert Abela promised that the budget would be realistic and designed with “the people, for the people.”

Monday will be Caruana’s first budget speech, after being appointed in November 2020 following the resignation of Edward Scicluna.