MHRA has noted with satisfaction that after 36 years, NSO has reported a government budget surplus for the year 2016 which is no mean feat given that MHRA has been urging governments to budget for a surplus for a number of years now.
The budget surplus has come on the back of a substantial increase in economic activity prominent among which is the tourism industry which has been producing record arrivals year after year since 2011.
Commenting on this fine achievement MHRA president Tony Zahra said: "Muscatonomics has produced a continuous expansion in the economy which has generated great activity and contributed substantially to government income. The achievement for 2016 was very good, however, we must caution against an expansion in government recurrent expenditure which is already far beyond what it should be. This is the time to register substantial surpluses so as these can be made use of when the economic cycle becomes unfavourable which will happen sooner or later as this is the way economies work."
Mr Zahra continued that Malta must now find a financing model to fund the billions of euros in infrastructure costs which is needed to turn the island into a 22nd century smart island. Without this investment, there will be a drag on private investment which will keep the island from making the leap into a regional leader of the stature of Singapore.