Prime Minister Robert Abela said that the Budget 2025, announced Monday, is just the beginning of several action plans by ministries which will be addressing the several challenges in the country.
Speaking at a press conference after Finance Minister Clyde Caruana’s Budget speech this evening, Abela said that government has answered three pertinent questions made by the public; what is the future economic plan, how to find a better balance between investment and foreign workers, and how government will strengthen its structures in the country to provide serenity and peace of mind for Maltese.
Abela said the government’s answer is based on one principle: quality over quantity, in several sectors such as services, the job market, investment and infrastructure.
He mentioned the reductions in income tax, which will benefit the entire country. This will leave €140 million extra in families’ pockets, Abela said.
Abela said that government has implemented social measures which shows government’s values, among them increases pensions, children’s allowances, and an unprecedented investment in mental health.
“With us, the public knows where it is. With humility, we have the capacity to hear peoples’ concerns and address challenges,” Abela said.
He continued that the Budget 2025 is the beginning, and not the end, of strategic action plans addressing major challenges in the country, which will be rolled out in the coming days by various Ministries, the first ones starting tomorrow by Economy Minister Silvio Schembri and Home Affairs Minister Byron Camilleri.
Abela said that the vision of quality over quantity will be moving to implementation stage, and till the end of the year, two national policies will be established, one on the economic immigration, and the other on the tourism sector, two critical sectors which after consultation with stakeholders, government will decide and implement.
He mentioned the Vision 2050 document, which is an important one which will give clear direction for the country, and where it aspires to be by 2030, and by 2050, with a strategy tying one sector to another holistically.
Abela said that in the past years, government has offered certainty, and has kept promises to businesses, and its promise to keep fuel prices stable.
“Despite these challenges, not only were we not going to increase burdens on families, but we reduced taxes,” Abela said.
He said the public does not want to go back to economic stagnation, and recognizes that the PL government has the answers and solutions.
Abela said that government has understood where it went well, and where it needs to do better. He said that government’s approach will quicken on consultation processes, and it is determined to implement.
“We are a pro-family government. This tax cut was the largest one in the country’s history, where 80,000 people who were paying income tax will not pay a single cent,” Abela said.
He mentioned the Children’s Allowance and pension increases, where families will be left with more money in their pockets.
He continued that government is in a fiscal situation which can withstand giving out all the financial aid to families.
Abela said that only a strong economy can do this, and government has once again shown its socialist values, through great increases for widows pensions, in-work benefit, and in the supplementary grants.
On tourism, calculating success will no longer be based on the volume of tourists coming to Malta, but more on the value added tourists bring to the country, and to bring tourists throughout the year, rather than just the summer months, Abela said.
He continued that measures have been discussed with social partners on the traffic challenges, and government will take decisions on this, as well as the country’s infrastructure, and the way the country generates energy, with emphasis on renewables.
“If this country wants to take on future challenges, the principle of quality should be a modern thought. It is not a policy, but a philosophy and a belief of the whole country,” Abela said.
He said that the Maltese Prime Minister of 25 years ago could not have even dreamed of announcing such measures.
On foreign direct investment, Abela said that today, government has the privilege of choosing an investment over another, and those which don’t bring added value and need many foreign workers will not match the country. “The decision for these must be in the negative,” Abela said.
He continued that this budget creates a distinction which was “never before clear,” addressing issues and impacts of foreign workers in Malta.
“We understand and we have the will, energy and ability to implement and bring change,” Abela said.
He said that the PN is a party of confusion and negativity, has a negative track record on decisions, plagued by internal conflicts and put the burden of higher bills on families.
“This government listens to peoples’ needs and acts on them, and puts more money in peoples’ pocket,” Abela said.
He said that the largest issue the country was facing five years ago was that of irregular immigration, which needed courageous actions, and now, the rate of arrivals of migrants in Malta is among the lowest in Europe.
Abela said that three years ago, the pandemic was the biggest issue, and “hands down, we won that challenge.”
In the past two years, inflation was the most pressing issue and with government’s measures, today, the rate of inflation is half the historic average, Abela said.
He continued that now, the increase in population and the impact on infrastructure is the most pressing issue, and today’s Budget announcements were the beginning of an action plan to address these challenges.