Malta has extended its COVID-19 wage supplement scheme for industries worst impacted by the economic effects of the pandemic until at least March.

This move, confirmed in tonight’s Budget speech, will see private businesses continue to benefit from up to €800 in government aid per worker for at least another five months.

In December, the government will evaluate businesses’ tax returns to assess their financial situation and will adjust the wage supplement scheme accordingly.

Salaries for employees hired after March 2020 will also be covered, with details announced later.

A new round of vouchers will also be issued but Malta Enterprises rent and electricity subsidy schemes will not be extended.

Malta’s government has forecast a 9.4% deficit for 2020, declining to 5.9% in 2021. Debt as a percentage of GDP is expected to climb from 43.1% last year, to 55% this year and 59% in 2021, similar to 2015 levels.

Despite this rise, the government believes the numbers are low enough to allow it to extend the wage supplement without raising any taxes.

What do you make of this decision?