CommercialCourier
Issue 102 | November 2022
65
An economy that works for everyone Sound economic policies and a resilient workforce are the recipe of Malta’s success. STEFAN ZRINZO AZZOPARDI, MINISTER FOR PUBLIC WORKS & PLANNING
W
e are living in unprecedented times. As the Covid-19 pandemic showed signs of abatement, Russian tanks rolled into downtown Kiev. The resulting increase in energy and food prices has crippled world economies, taking a significant human and economic toll. Amidst this turmoil, the Maltese government was preparing Budget 2023. Given the huge amount of money that government forked out at the height of the pandemic, to save jobs and businesses, government was often advised to refrain from promising that the 2023 Budget would not introduce new taxes. That advice was brushed off, and no new taxes were introduced in the Budget. Compare this bold decision with what is happening in Europe and beyond. Major world economies have had to impose new taxes, to make up for financial help, given during the pandemic. Malta did not go down that route. Sound economic policies, and a resilient workforce kept our economy growing at a satisfactory rate. For 2023, Government is investing €600 million to cushion increases in energy and cereal prices. Instead of asking taxpayers to foot the bill, Government has stepped in - a decision which has, and shall continue to have, a huge positive impact on our families and businesses. Had we opted otherwise, thousands of jobs would have been put in jeopardy, and livelihoods threatened. Here’s a wrap up: this year’s Cost of Living Adjustment will be of €9.90 per week for employees, or €514.80 over a year. Pensioners will receive an extra €650 next year, amounting to €12.50 weekly, while the taxable ceiling on pensions is being raised to €14,968, up from €14,318. Children’s allowance will increase by €90. 80,000 low-income earners will receive cheques to compensate for rising prices. Parents of a disabled child are to receive a €200 tax credit, and the grant for parents who opt out of working to take care of a disabled child will increase to €4,500 yearly, up from €500. Firsttime buyers will receive a grant of €10,000, payable over 10 years. Budget 2023 is a socially fair, sustainable and responsible budget, for despite the economic upheaval that the global economy is going through, government stepped in protecting not only the most vulnerable, but businesses too and, in so doing, safeguarded thousands of jobs. Even more so, Budget 2023 invests in critical projects, and major investments, which
“Budget 2023 is a socially fair, sustainable and responsible budget, for despite the economic upheaval that the global economy is going through, government stepped in protecting not only the most vulnerable, but businesses too and, in so doing, safeguarded thousands of jobs.” are crucial to ensure further economic growth. €700 million will be invested, over seven years, to implement the government’s greening projects – this in line with Government’s vision to have a cleaner, sustainable economy, and, in the process, creating green jobs – an important, and growing, economic niche. As the Minister responsible for Public Works and Planning, 2023 is set to be a busy year for my sector. Propped by the investment made through Budget 2023, it’s all hands on deck to ensure further sustainability in planning, higher standards in the building and construction industry, further investment in energy efficient buildings, and stronger awareness on health and safety measures at the workplace. In 2023, an important milestone will also be achieved: the problems and conflicts encountered by residents who live in apartment blocks shall be addressed through a review of the Condominium law. This review is necessary for the better management of common parts in condomina as part of an upgrade in standards of property management. The process towards an updated Strategic Plan for Environment and Development (SPED) will be finalised. Our aim is to lay down strategic objectives related to the economy,
the environment, and social development in policies and planning decisions. Despite their vital importance, and obvious benefits, economic growth and affluence alone are not enough. We need to up the game where the quality of our living environment is concerned. Better aesthetics in our built environment, and further investment in open spaces are at the forefront of Budget 2023: commencement of works for an improved Farmers’ Market at Ta’ Qali, further improvements at the Ta’ Qali National Park which shall include a jogging and cycling track, and the creation of more open spaces in our towns and villages are on the agenda. Being a sustainable Budget, the way forward is about further economic growth with further investment in the three key areas of our economy: health, education, and the environment. None of this would have been possible had we not had one of the lowest inflation rates and the lowest unemployment in Europe. As Prime Minister Robert Abela rightly said, Budget 2023 puts the people at its centre. Malta remains one of the strongest in Europe, owing to government’s sound economic policies and a resilient workforce. Budget 2023 ensures that Malta remains on the right track. n
