To greener pastures

The budget presented last Monday went well beyond the vote-sensitive short-termism which one would expect form the last budget before an election.

Instead, we presented a fiscal budget which above all sets the tone for a sustainable economic ambition that prioritises social progress, a tangible commitment to the wellbeing of our people.

The ardent will to improve people’s lives

The backdrop against which this budget was being prepared is indeed very particular. Our economy, just like every other economy in the world has faced the toughest financial strain since WWII. Energy and gas prices are skyrocketing. This is having a direct impact on electricity costs across Europe with some countries experiencing an increase of 166% compared to the average pre-pandemic electricity bill.

Despite this economic scenario, this years’ budget is very far from the usual postcrisis austerity package. To the contrary, this is a budget which aims at tangibly improving the livelihoods of the most vulnerable cohorts of our society; our pensioners and lower income earners, persons with different abilities and those amongst us which inherently are more susceptible to the social and financial risks of an extraordinary economic shock of global proportions.

The wellbeing of our people, particularly the hard-working families and their ambitions stand clearly at the core of this budgets’ objectives.

Our Vision for a Greener Economic Model

Following a year of conscious but decisive spending aimed at protecting jobs and shielding our families from the worst economic effects of the pandemic the government could indeed have been justified to stop at presenting a tax-free socially oriented budget.

We did the exact opposite. We presented a budget which provides a clear signal to all our economic operators: This is a budget that will help you invest, now more than ever, in a sustainable and greener economy and we are doing so because we want a more prosperous nation which delivers a better quality of life for all.

Businesses will do well whilst doing good

At this very sensitive juncture in Malta’s economic recovery we want to ensure that corporate investment is supported through effective fiscal measures. The reduction in the tax burden on reinvested profits together with a wider accessibility of capital allowances will make this possible.

Above all we want to incentivise cross-sectorial investment in sustainable projects and future-proof business models. We will be doing so by making it much easier for our SMEs to access funds for green projects and by being bolder in government sourced financial support for such ventures.

The message is very clear: Just like we were an indispensable partner to our Business community during the pandemic, this government will be a solid and reliable companion to corporates and Family-businesses alike, as they transform their businesses.

We want to do so because we want our businesses to prosper in an economy which needs to be more respectful of the environment and the social wellbeing of our communities. We will help our businesses to do well whilst doing good.

The ambition of changing mindsets

When it comes to sustainability, this budget is clearly looking towards instilling a long-term change in mindsets and we are doing so through a very positive and proactive approach. Free public transportation combined with an increased financial assistance for converting one’s car into a non-emitting electric vehicle is a clear reflection of our strategy.

We are doing so whilst shielding people from the inherent cost burden of higher electricity costs.

Again, we are not stopping here.

Because we are truly committed to achieve carbon neutrality and a better standard of living for our people, we will be helping our businesses to convert their own fleets towards cleaner vehicles. This is our pragmatic but decisive approach towards bringing about positive change in the long-term.

What a contrast from the

Gonzi administration’s response to the financial crisis; queuing up for five bulbs whilst forcing people to pay higher utility bills.

Our commitment to our children

Undeniably, this was the greenest fiscal budget ever. The strong commitment to afforestation will literally reshape entire areas of our islands. This together with an unprecedented investment in our parks and green urban areas are perhaps the most visible proof of this commitment.

Aggressively incentivising the acquisition, beautification and renovation of old property in UCAs will provide a much dose of rationality to the property market.

Every single incentive in this budget is embedded in the idea of ensuring a better quality of life for all. We are doing so because we want a society which elevates the wellbeing of its people as its primary objective. We might disagree on some, or perhaps many issues, but we will all agree that our future generations deserve to have a greener, fairer and more prosperous country.

This is the Malta I want for my children.