Shadow Minister for Finance HON GRAHAM BENCINI believes that while foreign investment needs to increase, this should not happen at the expense of local businesses. “Maltese businesses deserve fairer treatment, reduced bureaucracy, and a tax system that rewards innovation, reinvestment, and growth to remain competitive internationally while providing Maltese businesses with a level playing field.”
An accountant by profession, Graham Bencini’s experience in the private sector continues to shape his views on public sector financial management.
“In the private sector, efficiency, accountability, and performance are not just goals but necessities where results are driven by strategic planning, rigorous financial discipline, and clear metrics – principles equally essential in the public sector, especially when it comes to managing taxpayers’ money.”
“The way transparency and long-term planning shape companies’ decisions to deliver value and sustainable growth, this should be the same mindset guiding public finances, where spending and investments should be responsible and well-prioritised.”
According to Mr Bencini, one of the most misunderstood aspects of public finance is that more government spending automatically means better outcomes.
“Public finance is not about how much we spend or headline-driven policies. Malta operates within global financial limits where debt and deficits have real consequences and only responsible fiscal policy can improve lives without burdening future generations with short-sighted, unsustainable financial commitments.”
Despite improved growth and tax revenues, Malta’s government debt has already reached €10.6 billion, a figure expected to reach €11 billion by the end of the year.
“This alarmingly high public debt is now a serious concern. Malta’s debt-to-GDP ratio may still appear manageable on paper, but persistent deficits, growing debt, and widespread reliance on short-term borrowing paint a much more concerning picture.”
“The Nationalist Party has been consistently vocal on the need for efficient, effective and accountable use of public funds, but millions continue to be squandered due to poor planning, opaque procurement processes, and lack of financial control. Huge budget overruns and last-minute reallocation of funds not only show mismanagement but a lack of respect for taxpayers’ money.”
“Fiscal sustainability starts with credibility, and credibility begins when a government shows it can manage its resources with discipline, foresight, and integrity.”
Asked about the finance minister’s recent declaration that the current fiscal stability can be maintained without the need to introduce any new taxes, Hon Bencini blames the government’s reliance on short-term revenue windfalls and borrowing to sustain the current unsustainable recurrent expenditure levels.
“The current structural imbalances in our public finances demand meaningful reform. We can achieve fiscal stability by eliminating wasteful spending, restoring transparency and efficiency in public procurement and investing in areas that create sustainable economic growth.”
“With the government’s current path, avoiding new taxes is going to be difficult. Growth and revenue should be an opportunity to build fiscal buffers not a justification for squandering public funds.”
“This kind of mismanagement is eating away at the country’s financial stability and risks undermining Malta’s credibility with international markets. Only discipline and a credible medium-term fiscal plan that sets targets for deficit and debt reduction can address this situation.”
A valid concern for Mr Bencini is the fact that Maltese businesses continue paying 35% tax compared to the 5% that foreign businesses pay in Malta.
“This tax refund system was introduced as part of a broader strategy to attract foreign investment, create high-quality jobs, and position Malta as a competitive financial services hub, and it worked because thousands of jobs and a significant portion of our GDP were generated. But this was never meant to disadvantage Maltese businesses. The goal was always to use the stimulated economic growth to strengthen the local business ecosystem and reform taxes to benefit Maltese entrepreneurs.”
“It is time for a serious, structured review of our corporate tax framework. Foreign investment needs to continue increasing, but not at the expense of Maltese businesses which deserve fairer treatment, reduced bureaucracy, and a tax system that rewards innovation, reinvestment, and growth. Maltese businesses deserve a level playing field.”
Asked which reforms he would introduce to improve transparency in public spending and procurement, Mr Bencini outlined the elimination of waste and abuse in spending and transparent and efficient use of public funds.
“Transparency needs to be improved to restore public trust. We have seen too many cases of direct orders, opaque contracts, and cost overruns. There is no accountability. Even Maltese SMEs continue to identify ‘lack of good governance’ and ‘unfair competition’ as their top challenges. Our business community needs a more transparent and fair procurement environment.”
As a member of the Public Accounts Committee, Graham Bencini believes that the National Audit Office should be given greater autonomy and enhanced powers to be able to safeguard public funds.
“Strengthening the NAO is not just an institutional reform, but also a democratic obligation.Current auditing and accountability frameworks do not ensure full transparency and whenever weaknesses in procurement, contract management, and value-for-money assessments are exposed, findings are constantly ignored, deflected, or not followed up. This is a systemic failure of political will to act properly.”
Hon Bencini’s vision for Malta’s financial services sector over the next five to ten yearsenvisions the sector as a trusted, competitive, and innovative pillar of excellence.
“However, we need to restore credibility, reduce regulatory uncertainty, and invest in future-ready skills. A PN government would prioritise fintech, sustainable finance, and digital assets through strong regulation to build a high-value, innovation-driven sector that creates quality jobs and long-term growth.”
“If I had to deliver a budget tomorrow, my top priorities would address what families, workers, and small businesses are telling us daily about the soaring cost of living, wasted public funds, and a lack of future for our youth. We need to restore fairness and protect our communities, overwhelmed by excessive tourism and overdevelopment.”
“I dream of a Malta that rewards hard work, that supports the vulnerable, and that puts taxpayers, not political insiders, at the heart of every major decision.”
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