The government is currently busy planning the budget for 2021.

While normally people would be eagerly awaiting to see what measures will be announced that could potentially make their lives easier, this year there is a bit more at stake than usual, and more anxiety.

The government has already spent a lot this year due to Covid-19, with the wage supplement being one of its largest and most expensive measures.

The supplement has now, rightly, been extended to October, with Prime Minister Robert Abela stating that by the end of October the Government will announce the 2021 National Budget, which will include, among other things, a revision to the current model of the wage supplement.

What this mode will be is still a major question mark, and whether those businesses currently receiving support will continue to do so is also uncertain. What is certain however, is that this measure has thus far saved jobs, and the government should revise the model in a way to include all those businesses that require it. Businesses are still struggling due to the Covid-19 pandemic and are in need of support.

The tourism industry is likely one sector that will continue to feel the pinch. After the spike in numbers that came about through the relaxing of measures, not just in Malta, it is likely that less people would want to travel for a while. Especially after some countries were introducing quarantine requirements from one day to the next.

Helping businesses will need to be a government priority, but it also cannot forget the people in general. Some people are still working on reduced wages for example. The government might want to consider creating some schemes that will directly people save cash.

It should also aim to help the more vulnerable sectors of society, such as pensioners. Indeed the Prime Minister had already mentioned that it intends to boost their standard of living.

One thing the government must be weary of however, is its own finances. It is as yet unclear as to how long the Covid-19 impact on the economy will last, and so reserving funds for the long-fight must also be a priority.

If the government runs out of funds by a certain date but businesses are still struggling for example, that could spell disaster for the country.

It is expected that the coming budget will have a main focus on the Covid-19 issue, which will  mean that other issues that the government perhaps wanted to use funds for will have to take a back-seat. This is, of course, completely understandable.

In addition to national funds, EU funds are also available for government use to help tackle the Covid-19 situation, and the government should make full use of this, in addition to potential lower-rate loans which it could take. Such financial injections will give the government more options in terms of the kind of aid it can provide.

The stakes this year are higher than usual. If the government doesn’t strike the right balance to support business, support the people and save to support another day, then Malta could be in for a rough few years.