A future-proof budget

The government has delivered the first budget of this new legislature against the unprecedented backdrop of a surplus in the national finances complemented by robust year after year economic growth, that is consistently well above the European Union’s ave

It is the first budget for decades where an Administration, fresh from an electoral mandate, has actually devised a financial plan for a country that is not under the Excessive Deficit Procedure from the EU Commission.

This unwavering economic success is also the result of a direct shift of approach by the Labour Administration towards the formulation of a national budget that is now more of a comprehensive economic and social plan that, besides addressing short-term issues, is also part of a wider longerterm strategy for future generations. This is plainly in contrast to the yearly financial exercise that (unsuccessfully) attempted to minimise the national deficit that we witnessed during successive Nationalist Administrations pre-2013. We are now able to realise the ambitious vision of our Prime Minister, Joseph Muscat, of being the best in Europe. This is also thanks to the cohesive hard work of the Labour Administration of the last four years that is now serving as a foundation for more and more successes that will be enjoyed in the many years ahead.

I am confident that there are not many countries, if any at all, that are able to boast the fact of not introducing new, nor increasing existing, forms of direct and indirect taxes in their respective national budget announcements. Moreover, several nations around the globe also view Malta as a very successful economic and social model which they strive to emulate in terms of fiscal discipline and economic drive, among others. Our accomplishments are even more relevant given we are actually an island state, with all the inherent issues and challenges this brings about, with limited resources.

Contrary to what is happening in Malta, many European countries are simply focused on their short-term economic challenges of trying to reverse a scenario of no, or meagre, economic growth and increasing unemployment, especially among the youth. On the other hand, we are in an envious position of having already laid very strong economic foundations over the past four years and now able to plan effectively for the future and the well-being and prosperity of not only the current but also future generations.

Many measures announced in the last budget all confirm this state of affairs such as the first increase in leave entitlement to compensate for public holidays occurring on a weekend, further refunding of income tax, increase in VAT exemption thresholds, incen- tives for first and even second time home buyers, free public transport for youth and other measures, not to mention more investment in the education and health sectors, together with bold, important measures to safeguard the environment today and tomorrow.

We are clearly experiencing a bright present and are now building an even brighter future.

This is exactly what the Maltese and Gozitans rightly deserve after fully endorsing the path this country is taking post 2013 and resoundingly confirming Joseph Muscat and the Labour Party back in government in last June’s general elections. The electorate wanted continuity in the varied successes we are achieving, also because they are convinced that together we can achieve even more. What was unthinkable up to five years ago is now actually taken for granted under the able stewardship of Joseph Muscat.

We also hope, for the good of the country, that the Nationalist Party has learnt a lesson as this will ensure the required degree of decency and maturity in the political scenario. Extreme negativity, pessimism, dependence on utter lies and fabrications while regularly getting people out on the streets for dubious demonstrations of whatever sort, not only gets you absolutely nowhere but actually harm the country, while also undermining people’s trust in politicians.

I regret to note that the initial signs emanating from the PN camp do not augur well at all as the PN seems stuck in its own political quagmire that it itself created over the past years. Furthermore, as the PN infighting and the leadership saga of the past few months have confirmed for anyone who had a possible shred of doubt that the PN is not even able to manage itself, let alone lead the country.

To conclude, while we eagerly await the PN to start acting as a constructive Opposition that is fit for this country, the government is wasting no time, as the budget announcements has amply indicated.

We are proceeding, determined as ever, with our plans for more economic and social growth and prosperity as we also aim for further equality. We will remain on this path of surplus – a surplus not only in our public finances but a surplus also in our ideas, ambitions and aspirations and, as our track record unequivocally shows, that is exactly what we will deliver.