We publish on pages 6 and 7 of this issue most of the reactions by constituted bodies to the Budget Speech read out in Parliament on Monday by Minister Edward Scicluna.
As anyone can see, the overall reaction to the Budget by the constituted bodies is a positive one, as also has been the case broadly speaking in public opinion.
As has been said elsewhere, we know that our economy is not just good because the Budget is good but that on the contrary the Budget is good because the economy is good.
Broadly speaking, of all the constituted bodies quoted on those pages, only GRTU can be broadly described as softly negative. All the others come out in praise, obviously pointing out subjects or suggestions that have been left out.
The Chamber of Commerce said it is evident that the economy is performing well and the recent positive economic performances have generated a positive effect on the state of public finances. The Chamber called for a Budget that seeks to capitalise on present economic resilience to invest in the necessary infrastructure and safeguard future sustainability. At the same time, the Chamber called for further competitiveness enhancing measures with a view to ensure further growth and jobs in the country.
The Malta Employers Association said that the national Budget 2018 is a reflection of a growing economy and a fiscal situation which is allowing government more manoeuvrability and fiscal space to introduce a range of targeted measures to seek a better balance between economic social and environmental objectives. The increase in the number of persons in employment, the reduction in public debt to 57% of GDP, real GDP growth in excess of 5%, record low unemployment and inflation below 1.5% are all positive macro-economic indicators which have enabled government to introduce a number of measures to benefit various sectors of the economy
MHRA welcomes fiscal consolidation, the increase in the budget for the Malta Tourism Authority and measures that aim to improve the long-term sustainability of the general environment.
GRTU said it appears that government is taking our positive GDP trends for granted with no new incentives to continue stimulating the economy. GRTU is surprised that out of the 13 proposals it presented none have been adequately addressed.
The two Gozitan bodies are broadly positive.
When it comes to specifics, the Malta Chamber welcomes some measures, but then is critical about no announcement on energy prices and welcomes the coming discussion on deposit and refund system on plastic and glass beverage bottles.
MHRA called on government to implement concrete measures to address the issue of irregular and unlicensed accommodation and other services which are creating an unfair level playing field for legitimate businesses and resulting into millions of euro in forfeited revenues for government.
GRTU does not feel that businesses should be grateful for no increase in taxes. Businesses were one of the main contributors that generated the economic growth and surplus we are enjoying today. This time, they were also the ones left out from government's wealth distribution plans. In the current economic scenario, GRTU had expected a reduction in corporate taxation and the reversal of the harmful excise tax, among other things.
GRTU is among others alarmed that the biggest challenge facing businesses today, the lack of human resources, was not even given a mention in this year's budget.
This budget is populated by numerous minor proposals, none having the aggressive approach we desired to address specific issues. A case in point is traffic congestion with pages explaining minute solutions and nothing strong enough to really make a difference.