In its presentation, the occupying government recognized that there are two essential issues for the 3,600 settlers living in the Malvinas : the first, alleviating the continuous increase in the cost of living ; and the second is to deal with unforeseen situations that occur in the world as a consequence of the global crisis and that have a strong impact on the economy of the archipelago.
And the cost of living is increasingly rising on the Islands. Some items that will increase as a result of inflation are alcohol and tobacco with tariffs increasing by 5%, and almost all services, rates and charges provided by the government . The items that will not increase are FIGAS rates (airline that makes internal flights); the rates at the Leisure Center (gym, swimming pool, etc.), the Registration rates and the price of electricity , as highlighted by the MercoPress portal.
The Budget and Financial Plans for the 2024/2025 financial year come into force as of July 1 of this year and will extend until June 30 of next year. The allocated amount of 101.8 million pounds sterling is equivalent to $120,075.1 million pesos (130.3 million dollars) .
It is important to highlight that, as reported by the MercoPress portal, the budget will be allocated mainly to:
· Public Health and Wellbeing (18.6%) amounting to 18.9 million pounds or $22,292,928,000 (24.2 million dollars);
· Education and Job Training (10.7%) which corresponds to 10.9 million pounds or $12,856,768,000 (13.9 million dollars);
· Program for Capital Investments (5.9%) that reaches 6 million pounds or $7,077,120,000 (7.7 million dollars);
· Government Pay Increases (2.7%) covering 2.8 million pounds or $3,302,656,000 (3.6 million dollars).
As can be seen , the occupation government will allocate almost 40% of the budget to public health, education and job training, capital investments, salary increases and government.
In comparative terms, the 130 million dollars of the Kelper budget allocated to the expenses and investments of the 3,600 inhabitants of the colony for the fiscal year 2024/2025, constitute 16% of the 675,708 million pesos that the government of Tierra del Fuego spent by Gustavo Melella, projected to distribute during 2024; among the 200 thousand people who reside in the southern province.
Estimated amount of expenses and investments 2024, in the revised budget of Tierra del Fuego.
It should be added that the invading enemy maintains a military base located in Monte Agradable . But it depends on the United Kingdom of Great Britain and Northern Ireland, although the Kelper government contributes by paying, for example, for housing for military personnel.
Colonial legislator Roger Spink , in charge of the Government Services Corporation portfolio, maintained that “our commitment to capital investment projects, which are a boost to private sector activity, will continue during 2024/2025. The priorities within this program are the new port facility, the new electrical generation plant, Phase 3 of the Sand Bay Wind Farm, and the new waste disposal and management plant […] Other projects and work programs Important include improvements to the KEMH hospital, and services for the vulnerable population, such as the completion of the Tussac House nursing home this year, the continuation and maintenance of the streets of Stanley and the route to MPA (international airport) , repair and investments in roads in rural areas (Camp), replacement of critical ICT (Information and Communications Technology) infrastructure, more funds for housing construction and building maintenance, and the development of more urban lots to build housing” .
For Spink, the budget presented “remains in line with the principle of ensuring the long-term financial stability of the Islands” , ensuring sustainable levels for pensions while contemplating increases for them. For the legislator, “a whole range of other benefits are increased in line with the increase in the cost of living in September 2023, 8.3%, while also increasing the taxable amount for tax deductions and the most lows, to provide relief to the working class of our community.”
Regarding the increases in the amounts of contributions and rates, Spink maintained that “they have been moderate to reduce their inflationary impact.”
For the legislator, the budget considers “the structure of capital investments, which is critical in supporting sustainable social and economic development, aims for long-term development,” while providing opportunities for the private sector .
He also anticipated that the public sector of the Islands will suffer some restrictions since “the decisions made must result in a smooth net decrease in jobs in the government's permanent workforce.” It should be noted that the government sector is the main source of employment in the Malvinas.
Mark Pollard , another legislator of the occupation government, told MercoPress that the Malvinas government's staff had been reduced, although minimally, equivalent to three full-time positions , but a photo of the situation indicates that of the 856 positions that are needed , only 692 are fulfilling functions . In addition, the budget assumes that vacancies abroad will remain in that condition for six months during the recruitment task and for three months for domestic vacancies.
The MercoPress portal reported that , starting July 1 of this year, permanent officials of the occupation government will receive a 5.5% increase in cost of living , and certain ranks will also receive a change in category. Starting January 1, 2025, the minimum hourly wage will increase by 7.2% . The calculation base for income tax will be raised by 900 pounds ($1,061,568), which represents an increase of 5.6% ; while for the lowest categories they will rise by 6,000 pounds ($7,077,120), which represents an increase of 50%.
From 07/01/2024
From 01/01/2025
Pounds
Pesos
Dollars
Pounds
Pesos
Dollars
Minimum hourly wage
8,57
$10.108,5
10,97
9,19
$10.839,8
11,76
Income Tax Base
15.960
$18.825.139,2
20.428,8
16.860
$19.886.707,2
21.580,8
Income tax base for lower categories
12.000
$14.154.240
15.360
18.000
$21.231.360
23.040
Pensions will have an increase from 177.78 to 192.57 pounds per weekly payment , in line with the increase in the cost of living in September of 8.3% . The same percentage increase will be applied to contributions to the Pension Fund as of January 1, 2025.
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