Investing in a healthier society through work

Last year’s Budget was presented against the backdrop of a difficult economic climate. The series of decisions taken in the past years provided us with a long-term direction. This, in turn, has placed us in a better position than other European countries on how to weather the economic “perfect storm”.

Being an island gives us the false illusion that what happens in continental Europe and the global economy does not affect us. Although we have emerged from the recession comparatively unscathed there is no room for complacency. Our main trading partners are still going through a tough period. As such we have to remain cautious.

Last year, we focused on the protection and generation of work. What we strived for collectively, we achieved together. We attracted and secured investment, we saved and generated new jobs and we managed to control unemployment in a level which is among the lowest in the EU. The next step is to achieve consolidation and continue the downward path in terms of deficit reduction. Our aim is that, in 2011, this will be 2.8 per cent, below the three per cent threshold set by the EU and reinforced through its new budgetary rules.

Ultimately, Budget consolidation is in our interest to protect jobs and competitiveness. Competitiveness is probably the most used and abused term in modern economics. For us, competitiveness ultimately lies within our ability on how we manage the totality of our resources and competences to increase the prosperity of the Maltese. That is our responsibility and our commitment. That is what motivates our economical policy and it is in this spirit that I invite you to view the government’s economic and fiscal plan for the forthcoming year.

This year we are committing €2.9 billion in our Budget, which in itself is an increase on last year. Our expenditure is directed towards health, education, areas of social responsibility and addresses those who require attention. At the same time we are adamant at curtailing public expenditure and increase efficiency in the way the public sector is administered. While keeping this in mind, we are confirming our continued efforts, in line with last year’s Budget, to keep the momentum in generating more and better jobs.

We will be supporting businesses that want to embark the export route. We will be making more efforts to eliminate bureaucracy for businesses. We shall invest further in the upgrade and expansion of our industrial parks. We will step up our efforts to keep communicating Malta in the touristic and investment promotion sector.

In line with our efforts to improve our quality, we will be assisting those who make our vision of achieving excellence their ingrained mission. Through this initiative we want to raise more awareness about the various aspects that contribute towards quality and provide assistance for enterprises to become more competitive and increase the potential of taking up opportunities of franchising. We also want to foster an environment that will provide the necessary framework for a creative industry, to maximise our talents.

We are also committing ourselves to provide the necessary structures and investment needed so that whoever is employable can participate actively in our economy. We are enabling those with a minimum wage to improve their career opportunities. We are making it even more attractive for women to play an important role in the economy.

In this Budget we are pledging a significant investment in the continuous upgrade of roads, the continuation of the realisation of the biggest ever concerted effort towards the re-generation of our treasures and another multitude of capital projects and the over-all infrastructure.

This is our plan, our vision for the forthcoming year. Considering what is happening around us, whether close or far, we could choose to invest rather than be forced to tax more, we could choose to help rather than be forced to reduce aid, we could choose to plan, rather than be forced to manage a crisis. We are in such a better position not simply by chance. We are in the position we are today because we had the courage to take the necessary steps earlier on. This Budget aims at consolidating what we achieved to be able to keep it that way.

The author is Minister of Finance, the Economy and Investment.