Together, there is no challenge we cannot overcome. And we have faced several, including a pandemic, geopolitical tensions and their related effects such as high inflation.
Countries much larger than us have faltered. But we overcame and prospered, so much so that our economy has managed to register growth year on year.
I can attribute three main reasons behind this success.
First, consumers and businesses were shielded from rising energy prices, unlike in other countries. As a government, we shouldered this rise in energy prices, protecting those most vulnerable from the negative consequences associated with high inflation. This while concurrently taking another two strategically important decisions that contributed to our economic achievements – that of boosting social benefits and investing heavily to create the right conditions for a new prosperity.
This budget has reaffirmed and strengthened strategic priorities further.
Our priority to shield consumers and businesses from Europe’s rising energy prices remains one of the cornerstones of this budget. This will ensure that consumers’ purchasing power and businesses’ competitiveness will be boosted by a further €350 million. A direct injection into our economy that will ensure our living standard improves compared to that of other European citizens and that our economy continues to grow.
The social economy and progress thereof are synonymous with Labour. We will proudly continue to boost social benefits – because this investment goes directly to the people’s well-being. As a result, from January all pensioners will get at least a €780 yearly increase. Most will receive even more.
For instance, widows will get an additional €880 a year while those born pre-1962 will see their maximum pension rise by €980, addressing a discrimination and injustice that the previous Gonzi-led Nationalist administration had created. Furthermore, those with a live-in-carer will see their support supplemented by a further €1,000 and the senior citizen’s grant will increase by €100.
Those who are part of the working population will also benefit. In this regard, those with income below or at the national average will benefit from the additional mechanism against inflation. We have modified the scheme so that 95,000 families will be eligible for up to €1,500 assistance.
A one-income household with an average wage and two children: they will get €380. A similar family on minimum wage will receive €760. This mechanism will see us invest €26 million and this means that its allocation has already matched that in our previous flagship programme – the in-work benefit.
For us, families represent the future. And, insofar as they are concerned, we are determined to help them help us get the future right. And we are determined to support families throughout. The bonus granted on childbirth or adoption will rise to €500 for the first child and to €1,000 for the second. Children’s allowance will be increased by €250 per child, the largest increase in 50 years.
On top of these, working parents up to the median incomes will see their in-work benefit rise by €50 per child. To top it all off, we introduced a new benefit that compensates parents whose children continue studying beyond the compulsory age with an additional €500 per year, for three years.
Our heart beats strongest for those who are most in need– Robert Abela
At the same time, our heart beats strongest for those who are most in need. And, for our Labour government, no one is more deserving of our attention than parents of children with disabilities. We will, therefore, increase carers’ grants by another €487 as well as an increase in their tax credit for therapy costs by another €300.
And, to top it all off, we remain a forward-looking administration. The only credible partner for our business community, especially because, in spite of today’s challenges, we have a firm eye to the future.
How? We will again invest nearly €1 billion in capital projects. Our allocation on health projects will be double that we had before the pandemic and that on education and sports will be three times higher than pre pandemic.
Our allocation on investment incentives will more than double, particularly as we will be helping strategically investments in industries of the future. Our excellence in semiconductors and microchips will be enhanced further by taking advantage of the EU’s Chips Act and setting up a Competence Centre for Microelectronics in Malta. Similarly, SMEs will be able to tap €100 million in EU funds to renovate their offices, digitalise their operations and improve their access to finance.
From an infrastructure point of view, next year will also see us invest heavily in our energy sector, devoting an unprecedented amount of funds to strengthen our distribution network. As regards energy generation and waste management, we will be launching the waste-to-energy project and progress further on renewable energy projects in our exclusive economic zone. The work on the second interconnector will also advance further and there will be better incentives for more solar farms.
To create more avenues of sustainable finance, we will legislate a framework for green and blue bonds. This will create new niches in our economy, something which will also be driven by legislative frameworks for new sectors like aircraft leases and real estate investment trusts.
As promised in our manifesto, we will continue to create and regenerate open and green spaces. In the budget, we launched projects that will create new spaces equivalent to 11 and a half times the size of our national stadium. From Għajnsielem to Żurrieq, we want everyone to be not more than a 10-minute walk away from an open and green space.
Robert AbelaFinally, this budget marks an important step in the implementation of our vision. We have created clearer incentives to reduce reliance on imported labour, enhance skills and strengthen our vision of Gozo as an island of villages. We also announced the launch of our national regeneration plan to ensure that prosperity reaches all communities.
Malta Ġusta is about getting the future right. It’s our holistic plan to improve the welfare of one and all.
Robert Abela is prime minister.
