An old University colleague of mine this week reminded me how as economics students, we used to eagerly be waiting for that Monday, budget eve, fixated in front of the television, following every word uttered by the then Finance Minister Tonio Fenech, and with great attention to every detail, take notes so following morning we would discuss the Government's fiscal and economic plan for the coming year and the long term vision for our country.  It used to be an eventful day for us and our educators.  Fast forward to 2018, and the annual supposedly anticipated Budget day has been reduced to insignificant, each year shedding more of its effectiveness.

For the past seven years we have repeatedly witnessed a budget of short term injections, recycled and extended pledges and completely lacking the economic vision and direction for the country.  A budget that boasts a zero increase in taxation only for the Government to introduce new taxes few weeks down the line and consistently committing itself to invest less and less in capital projects.

This year's budget was particularly non-eventful, in the sense, it did raise our expectations but certainly then failed to meet them.  I would say it was an anti-climax.  Statistically, our economy is indeed boasting a remarkable economic growth.  The benign macroeconomic conditions are having a positive impact on government finances, which when combined with the revenue generated from the sale of passports, is resulting in the fiscal surplus.  Therefore, no wonder that the public at large, given the current economic climate, expected a bolder budget.  A visionary budget that would map the country's economic plan in the long term.  Budget that would be innovation driven, that would offer strategic solutions on how to restore our country's reputation which is exposing our major economic pillars such as the financial services industry, to too much risk.  One would have expected not only the announcement of the Anti Money Laundering Action Plan, but given the circumstances one would have expected a detailed plan of the measures being implemented and if they would actually render to concrete results.  We are yet to be convinced of Government's commitment to implement AML procedures effectively and to ensure that the banking sector will once again be shielded from situations like the Satabank, where the bank's failure ended up negatively impacting the bank's clients, the gaming sector and consequently our country's reputation.

Hence it is fair to say, that this budget failed to tackle the right priorities.  The continued measures of what had been already announced in previous budgets, in themselves are positive but they are unlikely to generate a decisive change in one's standard of living.  It simply is no game changer for anybody.

It is also clear that the Government is becoming more dependent on the expansion of our population through the inflow of foreign workers.  Therefore, it is high time for the Government to evaluate what is the desirable size of the population in Malta, to enlighten us of his plan if any of where do we really want to go, rather than passively observing the huge inflow completely out of sync with any coherent economic strategy.  The budget did not indicate in terms of allocation of financial resources necessary to cope with the sudden population growth.  Shouldn't the Minister highlight if the allocated funds for the environment, security, education, infrastructure and accommodation are sufficient to cope with a much larger population?  For instance, assistance for rents and social housing are good in principle, however, with the persistent increase in population growth, it is simply not enough.

Finally this budget failed to address the long term risks related to ageing and the sustainability of our current pension structure.  The pension system as is, is already not reflecting the real cost of living triggering a drop in one's standard of living once they reach their retirement age.  The sustainability of the same pension system is continuously being challenged.  Even here, the Government lost an opportunity to seriously address it, at a time when the country's finances would have allowed it.

Kristy Debono is the Opposition Spokesperson for the Economy, Financial Services and Innovation