NGOs present top three proposals for Budget 2025

As anticipation builds ahead of the upcoming Budget 2025 announcement next October, various sectors and stakeholders have begun presenting their proposals in hopes of influencing the government when shaping its fiscal strategy for the year ahead.

During Wednesday's press conference, which discussed the pre-budget consultation document, Finance Minister Clyde Caruana emphasised the importance of maintaining responsibility and sustainability in its fiscal policy.

Caruana stressed that this approach is essential for the government to continue supporting key subsidies - those on food and energy - while navigating global pressures. He added that inflation is now slowly declining.

The budget, which is widely seen as a critical opportunity for economic recalibration, is expected to focus on how the government will decrease the country's debt and deficit, while still providing support to the people.

A date for the 2025 Budget has been set for October, but Caruana refused to divulge it, saying he would leave that up to Prime Minister Robert Abela.

The Malta Independent on Sunday reached out to several entities to inquire about their top three budget proposals for 2025.

COLA should be extended and improved - Caritas

A spokesperson for Caritas Malta gave its top three recommendations for the budget, with the first one being to extend and improve the Cost-of-Living Adjustment (COLA).

"To better reflect inflation and the rising cost of living, the annual COLA should continue to be enhanced, ensuring that individuals, particularly those on fixed incomes, receive adequate support to maintain their standard of living in response to economic changes," the spokesperson said.

Caritas' second priority proposal is for additional healthcare and medicine support, where healthcare and medication rebates should be introduced for low-income households.

"Support should also be extended to those requiring alternative treatments not currently covered by the Pharmacy of Your Choice (POYC) scheme, easing the financial burden on vulnerable families," she said.

Its third proposal is to increase housing benefit benchmarks, explaining that the current rent benefit eligibility criteria are "too restrictive" given the cost of living.

She said that studies suggest increasing income thresholds by 25% to €25,743 for single parents with two or more children, and €41,704 for couples.

"This adjustment would enable more families to access housing support, alleviating financial pressure and improving their quality of life," the spokesperson said.

She said that these three recommendations are derived from a recently published study by Caritas Malta, the Minimum Essential Budget for a Decent Living (MEBDL), which provides a comprehensive analysis of the financial needs required for three types of low-income Maltese families to maintain a decent standard of living.

"These three recommendations, along with the 28 others outlined in the study, should be viewed within the framework of good governance and a holistic, well-being economy that balances the needs of people with the sustainability of the planet," she said.

The spokesperson said that these recommendations are in line with Caritas' vision of social justice and the capacity to live a life with dignity for all.

Remove all taxation on heritage conservation work, set up Heritage Fund - Wirt Artna

NGO Wirt Artna's chairman Mario Farrugia was asked about the organisation's top three priorities for the upcoming Budget in terms of the culture and heritage sector.

Farrugia replied that the government must prioritise setting up the long-awaited Heritage Fund in line with the Heritage Act 2002, which he said is 22 years late.

"This fund was intended to incentivise state funding research on heritage conservation, and the funding of emergency conservation work for which no funds are readily available," Farrugia said.

He continued that the fund could lead to the possibility of acquiring private cultural or historical property, whether mobile or immobile, on behalf of the public, as well as for assistance to heritage conservation initiatives, which are difficult to fund through other means.

"To guarantee the long-term sustainability of this fund it should be pegged to a percentage of the GDP," Farrugia recommended.

Another proposal is to remove all forms of taxation on heritage conservation work and the importation of cultural heritage objects or works of art intended for public display, Farrugia said.

Wirt Artna's third recommendation is to establish an annual award for the best three cultural heritage initiatives - one executed by a local council, one by a registered NGO and another by an individual or the private sector on the lines of that of Europa Nostra, he said.

Farrugia said that this should fill the void which exists in so far as state recognition towards the contribution of non-governmental bodies towards heritage conservation.

Funds towards development must be diverted to other activities - DLH

Vice president of Din L-Art Helwa, Alex Torpiano, kept his reply short, emphasising that the biggest problem in Malta and Gozo is the economy's dependency on construction and development, which he said has been acknowledged by many, irrespective of political views.

"The budget should indicate which economic activities are going to be promoted to divert funds from building development into activities which are more sustainable. No other proposals are really necessary," Torpiano said.

Budget for mental health should increase - Richmond Foundation

With regards to mental health, this newsroom reached out to the CEO of Richmond Foundation, Daniela Calleja Bitar, who said that there needs to be an increase in the overall budget for mental health, to bring it in line with EU standards.

Calleja Bitar said that with the right investment, the lives of so many people can be improved.

Firstly, she said that expanding community-based services would mean people can get support closer to home.

Calleja Bitar added that mobile crisis teams would help handle mental health emergencies in communities, reducing pressure on hospitals and emergency services.

Richmond's second proposal is to fund research to understand what kind of mental health support the Maltese population needs.

"National surveys, pinpointing service gaps, leading to targeted campaigns," Calleja Bitar said.

She continued that there is also a "real need" to allocate more funds for training and keeping mental health professionals.

"We need more specialists in this field and better support for them will help address workforce shortages," Calleja Bitar said.

She said that a true difference could be made if the mentioned areas are addressed and included in the upcoming budget.