And yet, another socialist budget

The world is facing a lot of obstacles that are leading to an economic regression for many countries.

Leaving the pandemic in the past, international conflicts are influencing the prices of many basic items needed daily. In Malta is no less. Many people noticed in the past few months how certain items that are bought on a daily basis are now more expensive.

The budget we heard last week, addressed by the Minister for Finance Clyde Caruana, was a breath of fresh air. Due to these skyrocketed prices we are experiencing, many thought that after a succession of positive budgets under the Labour Government without any raised taxes, this was going to be a first. However, the budget managed to surprise even the sceptics that for long spoke about a negative budget where people were being asked to tighten their belts, doing personal sacrifices to make it for the deficit of the country.

A remarkable budget measure was the direct investment of €350 million in the energy sector whereby the electricity and water bills will remain stable. Let us not forget how a Nationalist Party in government, as opposed to what is being done today by the Labour Party, raised the bills when the international oil prices increased. Let us not forget what the Nationalist Party represented by their leader told us a few weeks ago that the energy subsidies given by the Government are not sustainable, inducing us to presume that if he was in power, he would remove them completely. This measure alone, which is saving around €2,000 each household per year, is sufficient to label this budget as a very positive one indeed.

However, there is an exhaustive list of positive measures that the Labour Government included in this budget. As a socialist party we are keen to help the most vulnerable people to be able to live a normal life. One of the highlights of this budget was undoubtedly the raise in the minimum wage. All the stakeholders involved agreed that this measure was fundamental to decrease the gap between the minimum earners and the middle class, helping the local economy to remain stable. Yet, the Opposition Leader failed to present himself during the symbolic signing of this historical agreement made in front of all the workers’ unions.

We can go on with many other positive social measures that were proposed to fill in the pockets of our citizens, such as the increase in pensions whereby every pensioner will receive an additional €780 per year. This is not a small amount considering that some of the elderly receive the same amount for a monthly pension. The tax exemption for pensioners of 61 years and over on other employment income; increase in the children’s allowance of €250 per year; the birth benefit to increase to

€500 upon the birth or adoption of the first child or up to €1,000 for any other child thereafter; the grant for carer at home to be increased to €8,000; the tax credit increase for specialised children therapy up to €500 for each disabled child; a special allowance of €500 per year for three years to parents whose children continue to study after the binding age of 16; and many other social measures that contribute to a better quality of life.

In conclusion, despite all the pressure on the Government due to the international crisis, we have experienced yet another positive budget. A budget that saw the socialist imprint with a direct investment in the citizens of Malta and Gozo, leading them to a more enjoyable and sustainable life.