With the change of weather many will start to get into the autumn routine. At this time of the year we start preparing for our kids to return to school, our return to parliament and our preparation for the budget cycle.
While the actual budget speech is presented by the government, the budget has always been an exercise in national planning that involves all the social partners. This year consultations have intensified due to the COVID-19 challenges.
I was glad to receive further feedback from our social partners at the pre-budget MCESD meeting that I attended alongside my colleague Finance Minister Edward Scicluna, earlier this month.
As we have always done over the last seven years, and more so this year, in the October budget we will commit to use Malta’s resources as best as we can in order to spend in a diligent way and where is most needed.
We will keep on aiding our traditional central economic pillars while fostering the right atmosphere for the attraction of operators in new economic niches that will support our future growth.
I cannot but stress the importance that the pre-budget document is placing on sustainability, a term that can be read to mean different concepts, which however, are complimentary.
A budget that does not overspend, a budget that supports our businesses to remain in operation, a budget in tune with the concept that quality of life and the preservation of the environment need to coexist with financial gain.
Indeed this shall be the first budget that will have to pass a ‘Sustainable Budget’ test which has been set by the European Commission and which I am happy to be working directly on due to my ministry’s remit and portfolio.
Over the last months we have been preparing ourselves also via the assistance of OECD experts in the field that trained our public service employees.
We will do all it takes to stop the pandemic from turning into a loss of a quality of life- Carmelo Abela
The training was aimed at twinning sustainable development values with our national policies and projects in the context of the 2030 Sustainable Development Goals.
Indeed we must be all thankful for the diligent economic policy that we as a country embarked on since the first legislature of this administration; a cycle that spearheaded economic growth which acted as a buffer when faced with the harsh reality of a global pandemic.
We must not forget what we have all created from the stagnant economy we inherited in 2013. The surplus in government finances and the decreased debt to GDP ratio, created under Labour, meant that when the going got tough we could assist our enterprises and families with direct aid that was readily available.
The ultimate aim is to preserve jobs, income, livelihoods and the quality of life.
The effect of our economic record pre-COVID-19 on the way we handled the pandemic was also certified by a recent Standard and Poor’s report.
The same report highlighted that our COVID-19 regeneration-package was a very effective response that will lead to our economy being among the first to come out of the storm.
Another encouraging development comes from a recent EY Malta Survey compiled in August that showed how although spending decreased as a result of the pandemic, the expectation going forward is that people would revert to their previous consumption patterns.
The road ahead is perilous and uncertain. However, such periodical statements from national and international bodies help us rekindle the belief that our foundations are solid and that together we can overcome this.
A case in point was also the recent Eurostat figure on employment in Malta for Q2. Our employment growth, while marginal at 0.6 per cent, still compared very well with the EU average of a decrease of 2.9 per cent.
Separate Eurostat figures have also shows that Malta’s industrial productivity in July has also improved over the previous month, especially when compared to other EU countries.
Looking ahead, let me assure you that we as a government will do all that it takes to stop the COVID-19 pandemic from turning into a loss of a quality of life for our citizens.
We will do this by being among all members of our society and understanding their everyday realities. We will do this by identifying efficient but feasible solutions through direct talks with our constituted bodies and social partners.
I am positive that through a level-headed, humble, honest approach we will move for better days, together.
Carmelo Abela is minister at the Office of the Prime Minister.