It is a good thing that the Leader of the Opposition acknowledged the good parts of the budget for 2026, as it truly shows a new way of doing politics. Perhaps, we are seeing the dawn of a new political age in Malta when we can actually discuss the matters at hand without descending into partisan diatribes that benefit no one. Understandably, this will take both sides for the tango to work, but it is immensely refreshing to see.
However, I also agree that the budget, while generous in certain aspects, has fallen short of taking the meaningful steps to address the real issues that are affecting the country and which are on the minds of Maltese families. This is my reflection on one of the central measures of the budget.
I am naturally referring to the star of the show, the tax cut for families, which government is publicising as the most generous in history, and while this may be the case, to me it raises more concerns than provides answers.
Of course, it is a good thing that the government is reducing tax for parents; however, I wonder how effective this measure will actually be to address the low birth rate issue in the long run. My question is: how well was this measure studied? How deep into the social mechanics of complex matters relating to family planning, social expectation, work-life balance, ideas of self and one's place in society, and the environment children are expected to be brought up in, did government delve.
Because it is a well-known fact, that while access to disposable income is an important element in the equation of whether prospective parents decide to have children, it is certainly not the only issue. There are many other factors at play, which cannot be quantified or substituted by a tax cut. In fact, it is more likely for families with extremely humble resources to contribute towards an elevated birth-rate rather than those who are not missing for anything.
Perhaps, and this is a fault that many governments along the years have been guilty of, we are trying to solve a social problem with a fiscal exercise. Social problems need social solutions.
When parents look into each other's eyes and decide to have a baby, they do so because, first of all, they feel they are in a good place together, and that they can trust each other enough to be able to let a third human into their world. So, making sure that our young families have enough time to spend with each other, building their relationship, rather than chasing jobs to make the end of the month is central to this matter.
Funds are important, but so is the world we are building around our families.
Why are families feeling less inclined to have children? Is the built environment, the road-rage, the rat-race, overpopulation, ridiculous competition, opportunities and possibilities or lack thereof inspiring them to bring new life into the world?
You cannot throw money at a problem. You need to address it with solutions that take into account its sensitive, delicate and complex nature. Otherwise, it will be just a vote-bating exercise.
Alexander Mangion is Deputy Mayor of Attard