James Debono The government has yet to establish the national investment fund intended to finance the €80 million project for City Gate and parliament through income generated from government lands.
“Preparatory work is being carried out to operationalise this budgetary measure,” a spokesperson for the Finance Ministry told MaltaToday.
In the budget speech, Finance Minister Tonio Fenech had announced the setting up of the national fund, whose income would be derived from rents and concessions on government land, and from investment in stocks and shares both locally and abroad.
Budget financial estimates show that in 2008, €32 million were generated from the rent, sale and leasing of government land. The government plans to raise this income by increasing its revenue from the sale of public lands.
While the government earned €9 million from the sale of public land in 2008, it now plans to sell the equivalent of €19.3 million. On the other hand, income from rents of commercial tenements is expected to remain stable at €10.5 million.
In his budget speech Fenech claimed that the new parliament and theatre would be an investment for the fund, which will rent these buildings to the state “in a way that this project (would) not be a burden on taxpayers”.
The fund, which will be run on commercial lines, will be able to invest money in stocks and shares both locally and abroad.
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