Economist JP Fabri has remarked that the measures presented in Budget 2023 on Monday indicate a “very specific” approach from the Government that did not try to be “everything to everyone”.

In an interview with WhosWho.mt, he said that the Budget reflects the “stabilising and distributive roles the Government is taking and building its work around”.

“There is no doubt that this is a social budget from beginning to end which aims to cushion the impact of the energy hike while also ensure the adequacy and affordability of income of certain households,” Mr Fabri commented. He said that this role is only possibly due to the “strong fiscal management” the Government has displayed over the years.

Given Europe’s instability at the moment due to the war in Ukraine that came right after two pandemic-hindered years, the Government’s specific approach and target, along with the “conscious choice of stability and social protection” is something that “the current reality dictates and necessitates,” he explained.

“Any budget is nested within an economic reality and this year’s budget needs to be assessed against a unique environment dominated by a global energy crisis and inflationary spiral that the global economy is facing. The budget for 2023 needed to therefore find the right balance between stability and investment, social protection and growth, and also short-term stability and future development,” Mr Fabri said.

He added that the Government opted to cushion Malta’s economy from this threatening external environment, which will lead to a more “equal society with increased resilience and enable the private sector to not be burdened by the spiralling cost of energy”.

When asked whether there were any areas that he expected to be addressed even more, Mr Fabri said that he would have liked a “more focused approach” towards improving productivity in the public and private sector, even though there were a “number of measures and schemes that can be seen as productivity enhancing”.

“I also would have liked to see a longer-term vision for the island,” he said, before adding that he believes Malta requires an “articulated national vision of where we see ourselves heading in the future from an economic, social, and environmental dimension”.

Mr Fabri is a Co-Founding Partner at Seed Consultancy, with a wealth of experience as an economist in both the private and public sectors. He is also a Founding Member of 40under40, and a Member of the Investment Migration Council.