Calls for Greater Focus on Quality and Business Support

Following Malta’s Budget 2025 speech, various organisations have voiced their perspectives on the government’s approach, with a strong emphasis on areas that still require attention. The reactions reveal a mix of support, disappointment, and calls for clearer direction on long-term improvements.

ADPD: A Debt-Focused Future

The ADPD expressed concern over the long-term impact of increasing public debt, stating that Budget 2025 adds burdens on future generations without sufficient investment in sustainable sectors. ADPD criticized the ongoing reliance on subsidies, particularly for fuel, rather than investing in green alternatives, public transportation, and sustainable economic practices. They argued that sectors like tourism and construction contribute to environmental degradation, and called for incentives to shift towards higher-value industries, citing the need for a budget that prioritizes quality and sustainability.

Gozo Business Chamber: Focus on High-Value Niches and Infrastructure

The Gozo Business Chamber responded positively to measures that acknowledge Gozo’s economic potential, specifically the inclusion of skills-based migration policies to foster high-value industries. While the budget introduced initiatives for an elderly home, new schools, and an aquatic center in Gozo, the Chamber noted the absence of updates on a new hospital, which they consider critical. Additionally, the Chamber advocated for better utilization of the Gozo Innovation Hub and emphasized the need for improved maritime connectivity, especially for emergencies. They supported incentives for agriculture, heritage restoration, and green initiatives that reduce Gozo’s carbon footprint.

Malta Chamber of Commerce: Lack of Vision for Economic Competitiveness

The Malta Chamber of Commerce critiqued the budget as a “missed opportunity” for fostering productivity and economic competitiveness. While it acknowledged some positive measures, such as revised tax brackets and support for occupational pensions, the Chamber highlighted the need for a strategic approach to issues like sustainable tourism, transport, waste management, and digitalization. They voiced concerns over the lack of support for SMEs and felt the budget did not adequately tackle Malta’s challenges with infrastructure, workforce skills, and over-construction. The Chamber called for a comprehensive, long-term strategy to precede future budgets.

General Workers’ Union (GWU): A Budget of Social Solidarity

The GWU expressed satisfaction with the budget’s focus on social solidarity and commended measures that align with its proposals, such as continued subsidies for energy, fuel, and essential goods. The union highlighted the budget’s positive impact on disposable income through tax band expansion, pension increases, and in-work benefits. Additionally, the GWU praised the government’s commitment to occupational pensions and updates to the Wage Regulation Orders. Secretary General Josef Bugeja described the budget as a sustainable vision that balances economic growth and support for workers, all while maintaining a commitment to reducing the deficit.

SME Chamber: Lack of SME-Centric Measures

The SME Chamber expressed disappointment with the budget’s lack of focus on small and medium enterprises. While they welcomed the continuation of energy subsidies and work-life balance provisions for self-employed individuals, they were concerned by the absence of a promised reduction in business tax rates. Additionally, the Chamber noted a cut in electric vehicle subsidies, which they argue could hinder green adoption. They emphasized the need for a more robust approach to skills training, infrastructure, and bureaucracy reduction to enhance productivity and competitiveness for SMEs.

Kamra tal-Periti: Progress on Regulatory Reforms

The Kamra tal-Periti praised the increased funding for regulatory authorities, including the Building and Construction Authority and the Occupational Health and Safety Authority, seeing it as a positive step for improving quality in the construction sector. The Kamra also welcomed the allocation of €150,000 to support its statutory functions under the Periti Act, a long-awaited development that allows it to uphold professional standards, conduct inquiries into malpractice, and set ethical guidelines for the industry. They expressed commitment to using the funds to enhance public safety, sustainability, and quality in Malta’s built environment.

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Photo Source: DOI

In a reaction interview with MaltaDaily, Arnold Cassola expressed strong dissatisfaction with the recently announced Budget 2025, unveiled by Finance Minister Clyde Caruana. Cassola acknowledged certain beneficial measures, such as the widening of tax bands, increased Children’s Allowance, and support for individuals assisting people with disabilities. However, he emphasised that these steps fell short of addressing deeper quality-of-life issues, calling the budget a “budget of quality without quality.”

When asked what he would have done differently, Cassola highlighted the pressing issues of overdevelopment and traffic, criticising the government for not addressing these critical topics in the budget. “Overdevelopment and traffic—how are we supposed to tackle these?” he questioned, pointing out that there were no plans to counter these growing problems. Additionally, Cassola took aim at the lack of clarity on corporate tax adjustments, which are expected to rise from 5% to 15% in the coming years. He argued that local businesses, as well as foreign investors, require a stable outlook to plan for such changes.

Cassola voiced particular discontent with what he described as minimal increases for pensioners. He argued that the government’s additional €8 for pensioners is a mere gesture that does little to genuinely alleviate their financial pressures. “Don’t treat us like fools,” Cassola urged, highlighting that the government has granted a €5.24 Cost of Living Adjustment (COLA) to everyone, yet pensioners will only see €2.76 of it.

He also criticised the government’s initiative to provide free six-month gym memberships to first-time voters, implying that this was a superficial attempt to attract youth votes. “Young people are far smarter than the government takes them to be,” he argued, adding that the funds could have been better directed to support young volunteers in culture and the arts.

Cassola raised additional concerns over the budget’s push toward private pensions. While the tax band expansion provides modest relief—estimated to save individuals about €450 annually—he pointed out that the government simultaneously expects citizens to invest at least €600 a year in private pension plans. He interpreted this as an admission that the state pension may not be sufficient for future retirees. “Explain this clearly to people. Don’t deceive them,” Cassola insisted.

Moreover, Cassola touched on the implications of population growth on the labor force, with the Finance Minister projecting an increase in workers. With Malta already experiencing full employment, he suggested that this means further reliance on foreign labor, potentially exacerbating overpopulation issues.

Cassola concluded his critique by reiterating that Budget 2025 is focused more on quantity than on improving quality of life. He lamented the lack of substantial initiatives to tackle environmental challenges, overpopulation, and the impact of overdevelopment on daily life. “Quality of life—how is it going to improve?” he asked, emphasising that the budget fell short in offering any clear direction on enhancing the living conditions of Maltese citizens.

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