Government workers to get pay raise as planned on January 1

Government workers will get their pay raise and cost of living adjustment as planned on January 1, but some Budget measures will be put on hold once the Budget was not approved by Parliament yesterday, Finance Minister Tonio Fenech said this afternoon. He said the finance ministry had been prepared for this eventually and it would ensure that there were sufficient funds for the ministries to enable the government to continue to function. Funds were being assigned in terms of the Constitution, which allows emergency funding for four months from the beginning of the year when the Budget is not approved. This meant, he said, that if the election was held on March 9, a Budget would  have to be presented by the end of April. He explained that the Financial Administration Audit Act limited recurrent spending and laid down that funds may not exceed one-third of the total funds appropriated in the previous year. The law, however, did not specify how the funds may be used. Mr Fenech said the issue was discussed in Cabinet this morning and it was agreed that wage increases and the COLA allowance would be given as from January 1 as planned. Pensions and other social benefits that were...