Budget 2025: Country must move from quantity to quality, Caruana says

It is time for the country to move from quantity to quality, Finance Minister Clyde Caruana said in his introduction to the budget.His words indicate that the government has finally listened to pleas from the business community that the country must

By: independent.com.mt

Oct 28 2024
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Budget 2025: Country must move

It is time for the country to move from quantity to quality, Finance Minister Clyde Caruana said in his introduction to the budget.

His words indicate that the government has finally listened to pleas from the business community that the country must move away from its current economic model, one based on labour-intensive industry, to one which is more quality oriented.

Caruana introduced the budget as one that is positive and which includes the strengthening of social measures and promising a better economic future. Labour budgets have regularly been ones in which no taxes were introduced; this time, the government is reducing taxes.

This is being done not only because it is an electoral pledge, but because the country's economy is doing well, with the deficit being pushed down further than the indications of the European Union.

Pensions will also rise while the fuel and energy subsidies will remain, Caruana said.

He added that the government was of support to the community and business in difficult times, such as during the pandemic and to curb high inflation.

But now the time has come to face new challenges, Caruana said, as external situations are having an impact on the quality of life. The private sector's access to foreign workers from outside the EU has led to inefficiencies in the economy, and a dependency on them.

This did not improve productivity, but led to more quantity than quality. The difficulties being faced in traffic, infrastructure and health are a result of this mismatch as the infrastructure is not meeting with the demands of the country.

The future cannot be built on volume, especially in a small country like ours. It must be built on the quality of products and services offered, Caruana said.

The question is not one of nationality, but of skills. Countries compete for the best talent, and Malta must enter this race, and avoid the one to bring over more recruits with low skills. Caruana also highlighted the abuse some workers suffer, and the government will not turn a blind eye to this.

Sustainable development must consider the economic value and the social and environmental impact. The aim should not only be to generate wealth, but to create a society that lives better and serenely.

The government will be addressing this with an economic migration policy, based on respect for workers and the needs of the country. This is why the budget is one that seeks quality.

For this to happen, several sectors of the economy must align themselves. The infrastructure, education, tourism and foreign direct investment must be on the same page with these changes.

The government is committed to work with the private sector in a cautious but rapid way, aimed to obtain qualitative results rather than quantitative ones.

Caruana emphasised the need for students to continue their education in higher levels. Tomorrow's economy will be based on advanced technology and modern engineering.

The best Maltese and Gozitan minds must be used for this quality target to be reached. Maltese start-up companies and individuals are already working in these sectors, and we will give them the tools to expand their work, even outside our shores.

The same goes for tourism, where it is important to go for tourists who spend more rather than volumes of visitors.

When it comes to incentives to foreigners to set up shop in Malta, it must be said that things have changed. There was a time when investors solved problems by employing 200 people; today they create a problem if they employ 200 people with low skills, Caruana said.

The message the government wanted to convey is that progress is not only measured by moe=ney but also by the quality of life.

We understand the people when they say they want more control, order and regulations to be adopted in the employment market. Caruana said that the government took care of the people in difficult times, but it is now crucial that the country starts to look at quality, rather than quantity.