What’s in it for me, Minister?
Gone are the days when one would be dreading the first Budget of a legislature. Labour has departed from the parochial mentality of having unpopular budgets in the first years of the mandate, and more generous ones closer to elections.
The Budget has become an important economic tool that sets the national economic and social agenda, no longer bound by political timeframes. The 2018 Budget will be held on 9 October and the Government is currently examining which measures to include, to ensure that there is no disruption to Malta’s unrelenting economic success.
The expansionary Budgets Labour enacted yielded an economic miracle with record growth rates, low unemployment, soaring private investment and a surplus. Moreover, during its first 4 years the Labour Government generated policies that delivered social justice and more social inclusion. In the pre-Budget document, Minister Scicluna revealed that the Budget for 2018 will connect the prosperous economy to an improved quality of life. He also stressed that a flourishing economy deserved high quality infrastructure, whether roads, housing, education or health care. The driving themes of this Budget will be maintaining recent successes, and new initiatives to improve our infrastructure.
In 2013, Malta was faced with a deficit and, in contrast to claims by the Nationalists, the economic situation in our country was not very rosy. We were under excessive deficit procedure by the European Commission and also macro imbalances procedure. Today, all this is history because our country exited both procedures and is now experiencing a surplus. The country will continue with its surplus, improve the standard of living of Maltese workers and families and effectively redistribute wealth.
The decision to put emphasis on infrastructural development should come as no surprise. The Government has the electoral mandate to implement a sevenyear plan to upgrade all of Malta’s roads. The Budget will lay out this plan by setting up a new agency tasked to build, improve and maintain the entire road network. This will be the biggest investment ever in our roads, at about €700 million. It is infrastructure that will foster economic growth, not restrict it.
Another major infrastructural expenditure will be in high quality health care. This will include the building of the Paola Regional Hub, a new out patients building, the new Mother and Child Hospital that will specialise in the care of expectant mothers and paediatric care, a new five storey car park and the continued modernisation of health centres. On the former St Luke’s Hospital grounds there will be a new rehabilitation centre, a specialised centre for dermatology, another one for orthopaedics and Karen Grech Hospital will be refurbished into a geriatric hospital. Gozo will also have its fare share with a new General Hospital providing new services such as obstetric orthopaedics, endoscopy, cardiology and oncology care.
Malta’s increased economic activity and a budget surplus should lead to measures that distribute wealth more fairly. We need to continue tackling issues such as poverty, a largely unregulated rental market and social housing. Recent Budgets have been successful at achieving more social justice. Consecutive increases in pensions, a reduction in energy tariffs, and other reforms in social security benefits have contributed to reducing those at risk of poverty. The recent European statistics on income and living conditions have shown that we now have 9,000 fewer people at risk of poverty and social exclusion. The same report found that Maltese families have more disposable income allowing them to have a better quality of life. We must keep on working to eradicate poverty and social hardship, in particular amongst single-earner families, children and the elderly. This Budget will increase pensions once again, and start implementing the landmark agreement reached between the Government and the constituted bodies to raise the national minimum wage.
Continued economic growth will also be a major pillar for this Budget. The underlying principle is that an increase in national wealth, consequently, can be fairly distributed in society achieving more social justice. Interestingly, Archbishop Charles Scicluna gave a very good homily on Independence Day about the common good. He argued about the importance of an increased common good and wealth distribution which ensures a welfare society that supports the most vulnerable. I totally agree with the Archbishop on this one, and am sure that the forthcoming Budget will be a perfect example of how to do this in practice.
The Budget for next year will build on previous ones and will reinforce the results achieved so far. Measures being put forward will be rooted in principles of social mobility, social justice, equality and a better quality of life. They will protect stability and certainty in our economy, reward diligence, bring more progressive reforms and address the needs of the weak. The Budget will mainly focus on the implementation of the electoral manifesto on which this Government was strongly re-elected. It shall be another chapter of the Maltese success story.
Malta’s increased economic activity and a budget surplus should lead to measures that distribute wealth more fairly