Malta/ 6.2 Public cultural expenditure  

6.2.3 Sector breakdown

In 2011 there was an overall increase of around 13% in cultural expenditure. The largest increase was of 26% in funding programmes and initiatives for individuals and enterprises, reflecting a stronger emphasis on the contribution of NGOs and enterprises as key contributors to creative development. All public cultural organisations retained their allocation or registered an increase. Around EUR 4.3 million allocated for new initiatives in 2010 were reallocated for Budget 2011, while new initiatives for 2011 amounted to EUR 840 000.

In 2011 around 10.4 million were transferred to NGOs, companies or individuals through the financing of cultural entities, including the Public Broadcasting Services and the National Philharmonic Orchestra and through funds allocated by schemes such as the Arts Fund, the Film Fund, the Arts Scholarships, and fiscal incentives for foreign film production.

Table 8:    Direct state cultural expenditure and transfers (central level): by sector, 2011, in 1000 of EUR

(Figures provided below are Estimates for the year 2011, as approved in November 2011)

Source:    Creative Economy Working Group.

Table 9:    Breakdown of State cultural expenditure: by sector, in thousand EUR, 2005-2011

Source:    Creative Economy Working Group, 2011.

Cultural expenditure for each year from 2005 to 2011 is re-grouped in the table below into Cultural Heritage, Art, Media and Interdisciplinary. The table below shows that the share of these segments of the total cultural public expenditure has been changing. Although expenditure in cultural heritage retains the highest share, other expenditure in Art and Media has been gaining. Cross-cutting sectoral initiatives also started in 2010 and more than doubled in 2011.

Table 10:  State cultural expenditure: by sector, in thousand EUR, 2005-2011

Source:    Creative Economy Working Group. 2011.

Developments during 2005-2011:

(Refer to chapter 8.1.1 and chapter 8.1.2 for more information on the initiatives mentioned in this chapter)

Heritage

• Cultural heritage is the second largest spending segment for government with 35% of government expenditure in CCIs (2005-2011). The main sub-segment in cultural heritage is historical monuments and museums (including the financing of Heritage Malta and capital projects of restoration), which is also the largest contributor to expenditure increase in this sector. A marked decrease in government funding almost halved the expenditure in 2007 to around EUR 4.9 million, possibly due to more reliance on new EU funds available for the sector. However this increased to around EUR 9 million in 2010, mostly due to increased funds for rehabilitation projects in Valletta and restoration works on historical sites. In 2011, there was a further increase in expenditure on capital projects, mainly EUR 1 million for further restoration works on Fort St Angelo.
• Heritage is by far the major area drawing on EU funds, with a share of 95% of EU financing for culture between 2005 and 2011. EUR 16.5 million out of around EUR 17.8 million of EU funds for Heritage were acquired for capital projects by various government ministries and entities. Government contributed EUR 1.15 million to the funding of these projects in 2011. (Only this contribution is included in the figures above.)

Arts

• Arts received 21% of government expenditure in CCIs (2005-2011), ranging between EUR 3 million and EUR 5.6 million each year. Expenditure dropped in the period 2005-2007 but almost doubled in 2008 and continues to increase in 2010 and 2011. Expenditure growth on theatres in 2005 was the highest in the segment and led to the increase of 12% in 2005. In 2006 there was higher expenditure on festivals, whilst in 2007 there was a drop in music and theatre expenditure. Major decrease in expenditure on theatres was mainly due to lower amounts spent on upgrading of theatres.
• In 2010 The Malta Arts Fund and the Arts Scholarship Fund were introduced. Also set up were the Fund for Acquisition of Contemporary Maltese Artworks and the Fund for Artistic Works in Public Spaces.
• A Business Support Fund of 0.2 million Euros for Crafts and Artisans was set up in 2010 and reconfirmed in 2011. Half of this fund is directed to finance the Ä ieħ l-ArtiÄ¡janat Malti Awards.

Media

• Expenditure on media was around 43% of cultural expenditure between 2005 and 2011, making it the sector of major cultural spending. The expenditure on the media sector has been growing throughout this period. In 2005, expenditure on radio and television (public broadcasting services) resulted in higher expenditure. Expenditure on cinema increased in 2006 and 2007 as a result of the introduction of film industry incentives and the rise in the expenditure of the Malta Film Commission. Unusually large expenditure is noted in 2009, due to a high level of film industry incentives for foreign productions. This went down from EUR 6 million in 2009 to EUR 2 million in 2010 and 2011 due to the varying level of foreign film production activity on the island.  In 2010, the government also funded a Digital Games development strategy.

Interdisciplinary

• Interdisciplinary expenditure is not recorded up to 2009, with no government policy or initiative addressing cultural and creative sectors in tandem. The first such initiatives appear in 2010 and 2011 aimed at addressing the cultural and creative economy as a whole. Initiatives in 2010 included the Creative Economy Project and the European Capital of Culture Project. In addition, the Award for Creativity and Innovation was launched in 2009 for implementation in 2010, with a fund of EUR 0.1 million to help incentivise investment in creativity and innovation in education, technology, manufacturing and the arts.
• In 2011 new schemes announced include the Creative Economy Trust Fund, the President's Creativity Award Scheme, Support to Cultural NGOs / Enterprises, Students' Cultural Participation programme and the Schools Creativity Programme. These initiatives amounted to an additional EUR 0.78 million of expenditure in 2011, targeting the development of individuals and organisations in the diverse sectors of the Creative Economy, including the cultural sectors. In 2011 there was also a boost in funding for the European Capital of Culture project.

Your Comments on this Chapter?