Budget 2021: The way forward towards economic sustainability

As a government, we have sought during the recent challenging times to not only support our businesses and safeguard employment but also provide the necessary opportunities for our economy to continue to flourish and our families to thrive.

While the ongoing pandemic has sounded the death knell on thousands of businesses and millions of jobs across the continent and beyond, we have ensured the survival of our economy and its continuation through the establishment of a robust economic regeneration plan which seeks to encompass every sector and every strata of our society.

Besides several initiatives aimed at reviving the economy, including wage supplements, rent and electricity subsidies, as well as the postponement of NI and VAT payments, an integral part of this regeneration plan has undoubtedly been the launch of the €100 government voucher scheme, which has been lauded as a lifesaving tool by several stakeholders. Several industry leaders have observed that the scheme has proved essential for the survival of businesses during the past months at a time when consumption was slowing down.

But not only. The vouchers have also served as a welcome respite to the general population, at a time of great trepidation brought about by the pandemic, to the extent that up to the 14th of October, around 1.8 million vouchers have been redeemed, meaning that 81.2% of all €100 government vouchers have now been used, an economic injection which to date amounts to more than €52 million.

Further to this, it is quite heartening to observe that a survey analysing the impact of the €100 government voucher scheme, conducted by statistician Vincent Marmara showed that 85% of the respondents said that the vouchers’ initiative has helped both on a personal level, as well as a contributor to the economy. It is even more encouraging and a testament to the success of the vouchers’ scheme that in this same survey 96% of the respondents favoured the re-issuance of the vouchers’ initiative preferably during the winter months.

But now is not the time to pat ourselves on the back and bask in our past successes. Our work, as well as intense collaboration with the relevant stakeholders needs to continue tirelessly. We must ensure that not a single sector, nor any individual is left by the wayside during this challenging period in our history. To this end, as a government we have ensured that the upcoming budget will reach out to an even wider array of sectors and strata of our society.

They say that to give a man a fish you feed him for a day, to give a man a fishing rod he’ll feed himself for a lifetime. I believe that during the height of the crisis, we have provided through timely initiatives the urgent and crucial support required by our businesses and employees to stay afloat. Now however, we must provide the tools necessary to ensure autonomy and growth for all our enterprises and for this to happen we must deliver a substantial investment injection into our business community, which will serve as encouragement for further investment by the same community.

Budget 2021, which is Prime Minister Robert Abela’s first ever budget, will continue building on what we have achieved thus far through the exploration of new economic niches. We need to continue with the intense diversification of our economy, through which we will be better positioned to endure any unforeseen shocks similar to the one we are currently experiencing. This can be solely achieved by maintaining an ideal ecosystem in which our economy can thrive; an ecosystem which galvanises investors into establishing their businesses within our shores, nurtures and sustains talent, encourages investment initiatives, and help innovative start-ups take flight.

Budget 2021 aims to create the necessary framework for this holistic ecosystem to flourish. This includes the upgrading of our infrastructure through specific investment, as well as the bolstering of current and future enterprises which aim for a greener, more digital outlook in their operations. The way forward requires not only that we instil the necessary trust for our economy to regain valuable momentum but also by provide the necessary incentives to ensure long-term economic sustainability.

Working within the parameters of a new normal, where the right balance between the health of our population and its economic wellbeing is key, Budget 2021 seeks to establish not only sustainability for the here and now, but provides a long-term, forward-thinking strategy which ensures that our country retains its cutting-edge competitiveness within an ever-evolving, everturbulent global scenario, while simultaneously creating more new job and business opportunities for our people.