"Irregular immigrants" in Malta and government expenditure

Abstract

The Maltese Government plans its budget keeping in mind the Growth and Stability Pact criteria. At the same time it has to meet the unexpected expense related to the maintenance of irregular immigrants who end up in Malta. This dissertation evaluates the implication of this expense for Government finances and for the Maltese society in general. Expenses related to public expenditure, budget deficit and national debt are under control thus the Maltese Government is achieving its budgetary targets. Irregular immigration on the other hand is hindering such targets. From one financial year to the other the expense related to irregular immigration is increasing taking in consideration the increase in flow of immigrants in these last three years. The Maltese economy is experiencing a decrease in its economic growth rate. This is due to the negative rates that the Maltese economy is experiencing in terms of the households savings and consumption, and investment growth. Other variables that are experiencing negative rates are the demographic and labour market changes. As to countervail such deficiencies in the Maltese economy, the author has recommended four policies. The main aims that underpin such policies are to lessen the burden of irregular immigration on Government expenditure, and to utilise irregular immigrants as to increase the Maltese economic growth.