The upcoming budget should serve as a catalyst to support the economy in moving forward, seeking quality over quantiy. In presenting its proposals for Budget 2021, the MEA said that while it recognised the special circumstances that underline this budgetary process, Government must be forward-looking and consider elements to improve people’s quality of life.
In its proposals, the MEA placed emphasis on environmental matters, tackling matters ranging from food security, reducing noise pollution and investment in green technology.
It also suggested a number of proposals aimed at spurring economic growth during this time of crisis, including a reduction in VAT rates and household utility tariffs to support demand.
The employers’ lobby group also focused on external demand considerations, suggesting an intensive marketing campaign to promote Malta and redevelop routes and direct incentives to inbound tourists in the coming six months, such as one free night accommodation to visitors spending more than six nights in collective accommodation. Incoming flights could also be subsidised for a limited period, it said.
“The effectiveness of this package will depend on the business response to these fiscal injections, and also on the need to strictly enforce public health measures to keep the numbers of infected persons to a minimum and thus prevent a relapse which will be damaging and costly. Government is urged to maintain contact with the social partners to exchange information so that the situation will be monitored continuously, and further measures that extend beyond September 2020 may be discussed to reflect the prevailing situation”, the MEA’s document said.
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