Finance Minister Clyde Caruana will be delivering his second ever Budget speech on Monday evening (tonight), expected to take around two-and-a-half hours long.

Presiding over his second ever Budget, this comes at a time of unprecedented global economic challenges.

Indeed, the Budget for 2023 comes at a uniquely challenging time in the world’s history. Ravages from the pandemic are still being felt in the form of supply chain disruptions and shipping delays (China is still pursuing a zero-COVID policy) with some economic sectors also still behind in the race to recover from the pandemic, while war on the periphery of Europe due to Russia’s invasion of Ukraine has resulted in unprecedented price hikes for oil and gas, causing Europe’s energy bills to balloon.

On the local front, while Government has maintained its decision to subsidise energy and staple foods, to the tune of €608 million in 2023, the country has still not been insulated from the impacts of widespread inflation. Operating costs for a wide spectrum of businesses have shot up due to the increase in shipping costs, and the increase in costs for just about any raw material or goods required. Moreover, persistent staff shortages that began in 2021 has forced employers to raise wage bills in a bid to retain and attract talent, further impacting the sustainability of their operations.

Dr Caruana has ruffled feathers since first being appointed to the role of Finance and Employment Minister, particularly due to championing the Government’s fight against tax avoidance and evasion. This comes at a time when the state coffers have undergone unprecedented challenges in the form of COVID support to the general public and private business and the state’s policy of shielding consumers from rising energy costs.

With a view to keeping Malta’s debt-to-GDP ratio in check, and in line with the Government’s decision not to raise new taxes or burdens, the Minister has his work cut out for him as he strives to keep Government expenditure under control, make sure all collectable state revenue reaches the Government, all the while spurring economic growth.

Prior to joining the Cabinet, Minister Caruana has enjoyed a fruitful career, having held the position of executive chairman at the state employment agency, JobsPlus, from 2014 and 2018. He is credited with being instrumental in the drafting of former Prime Minister Joseph Muscat’s national employment policy when he formed part of Active Labour Market Policy Counselling and Action Committee between May 2013 and April 2014.

Indeed, he is is credited as the main driver to implement Dr Muscat’s labour policies and reforms, most notably related to free childcare, In-work benefits and others.

During his tenure at Jobsplus as Chairperson (January 2019 - October 2020), just before he was appointed to Prime minister Abela’s Cabinet, he authored several position documents and policy papers, which have been central to the Government’s labour force policy.

Prior to these roles, Minister Caruana worked at the National Statistics Office (August 2007 - September 2012). He also lectures in Economics, at the Faculty of Economics, Management and Accountancy at the University of Malta.

Minister Caruana has written papers and articles on the welfare state and the labour market, as well as related research and consultancy work.