Investing boldly for the future

The Budget, presented to Parliament last week, is the largest the country has ever seen. Despite the COVID-19 pandemic, it set a resolute agenda and allows us all to look to the future with confidence.

From the moment this government came to power seven-and-ahalf years ago the approach has been growth, not austerity. We continually sought to expand economic activity rather than increase taxes and cut expenditure on public services.

It is a remarkable contrast with the way Nationalist governments acted in a time of crisis. They increased utility bills and placed additional burdens on families and businesses.

The pandemic has taken its toll, with a deficit of 9.4% of Gross Domestic Product expected for 2020 after four consecutive years of exponential economic growth. But this is something we can bear and overcome. It is better to keep the fundamentals of the economy sound so that economic activity can bounce back, while saving jobs.

The extension of the Wage Supplement until March was a central feature of the Budget because it gives reassurance to families and businesses alike. We are closely following and addressing the COVID-19 pandemic and government is determined that everyone will be able to keep their heads above water and that businesses remain equipped with the tools to survive and prosper once more. It is not only the responsible thing to do but it is possible because of how well the country’s finances were managed in recent years, allowing the necessary resources to finance a hefty Budget without introducing or increasing taxes.

Other measures in the Budget will strengthen the economy too. There are increases in tax rebates, increases in children’s allowance and grants for carers. Pensions will rise by €5 a week with free Tallinja cards for the over 70s. The extension of stamp duty relief will keep the property market buoyant and another round of vouchers for everyone will once again aid the hospitality and retail sectors.

The offer of free internet for those of school leaving age who stay in education is an incentive for them to attain new skills while ensuring the necessary connectivity for online learning. A good deal of investment is going into technology to ensure a steady path towards further digitalisation.

Another eye-catching announcement was the ban on the importation of single-use plastics from January, followed by a ban on the sale of all single-use plastic products from 2022. It is an example of how seriously government is taking its responsibilities in protecting the environment.

We know how effective car scrappage schemes have been in the past, removing the most polluting old vehicles from our roads and now grants are being extended up to €7,000, coupled with new incentives for electric cars. Other incentives on renewable energy will encourage the installation of solar photovoltaic panels, solar water heaters and renewable storage batteries.

The Budget is a well-rounded programme because it deals with the immediate issues, plans for the long-term, puts emphasis on business and jobs, cares for the more vulnerable in society and provides incentives to be more environmentally responsible.

One must bear in mind that the 2021 Budget will be enhanced by the record EU funding of €2.25bn over the next seven years. EU funds will be invested in environment, climate change, research, innovation, education, security, agriculture, fisheries and social measures.

We all remember the old times when a Budget was something to dread. Today, a Budget is an event that gives us hope and a positive outlook for the future. We can look forward to the coming months and years with confidence that our economy is robust and will provide the jobs, benefits and support that our country needs.