The 2023 Budget included measures to mitigate the impact of the cost of living but lacked economic direction, environmental measures and a long-term vision.

UHM Voice of the Workers expresses its satisfaction that Government took the proposal piloted by the union (and backed by other unions) on board regarding COLA and the relativity of wages in the public sector and governmental entities. Through this proposal these workers will received €10 million in all. Failure to take such step would have resulted in the erosion of the relativity between the scales for workers in the civil service and public entities.

In 2023 economic growth will be slowing down from 6% to 3.5%. This may lead to a drop in revenue in Government’s finances. Despite listing several capital projects, the Budget lacks vision or details on the long-term economic strategy and how to attract new economic sectors. The fact that this criticism has been levelled for years indicates that this particular aspect is being given low priority.

At present the country needs investment in human resources, so that workers can improve their skills and perform better-paid jobs. The Budget skirts the issue of how to increase productivity to make the change from an economic model based on numbers to one based on quality and added value.

On the environment, the Budget lacks proposals how to address traffic congestion, how to increase energy efficiency and how to increase public and recreational spaces for families.

UHM notes that even though the Budget refers to the role of the social partners, there are no details of how they will be supported to beef up workers’ training. Malta should follow the example of other European countries where unions play a strong role in this aspect.

The 2023 Budget ignored the saga of the port foremen which has been dragging for years and for whom justice is yet to be done.

UHM regretfully notes that various important proposals were ignored. These include the elimination of double taxation on national insurance, double salary rates on Sundays for all workers and better work-life balance for working parents through a provision to give the option to work reduced hours.

For the umpteenth time the Government has increased the allocation to Steward Health Care from €50 million in 2021, €70 million in 2022 and €93 million in 2023. Yet, Government did not have enough funds for Steward transferred to the Government, who lost their years of service and started from the scale from scratch. Such injustice should be remedied as soon as possible.

No Budget can address all problems at once, but this does not imply that certain reforms or changes in economic direction should be put aside year after year. While it is good to take steps to address challenges being faced in the very short term, it would be a mistake to limit ourselves to firefighting  without looking what lies ahead on the horizon.