Issue link: https://maltatoday.uberflip.com/i/1510811
9 EDITORIAL BusinessToday is published every Thursday. The newspaper is a MediaToday publication and is distributed to all leading stationers, business and financial institutions and banks. MANAGING EDITOR: SAVIOUR BALZAN EDITOR: PAUL COCKS BusinessToday, MediaToday, Vjal ir-Rihan, San Gwann SGN9016, Malta Newsroom email: bt@mediatoday.com.mt Advertising: afarrugia@mediatoday.com.mt Telephone: 00356 21 382741 2.11.2023 T he budget presented by the Finance Minister on Monday goes a long way to alleviate inflationary pressures on low income earners but does little for the hard working middle class. The growing dependence on sub- sidies to keep energy and fuel pric- es stable is a chokehold on Clyde Caruana's fiscal manoeuvrability as much as it is a Godsend for keeping inflation in check. The inability to provide signif- icant tax relief to middle income earners will leave them struggling to maintain their standard of living next year. Caruana did not even amend the tax bands to ensure the COLA in- crease is not taxed, something all unions and employer groups rec- ommended before the budget. It is unclear whether this recommen- dation was ignored as a result of fiscal prudence or simply because the minister wanted to be sure he has fiscal leeway in 2024 for any ex- traordinary expense that may erupt. The resultant situation is one where the spend on infrastructure remains inadequate. The budget does little to address the pressure on energy distribution, waste man- agement, traffic congestion on the road network, the sewage network and hospitals' capacity as a result of the population growth of recent years. In the Chamber of Commerce's words, the "budget was another missed opportunity at introducing concrete measures to disincentivise private car use in congested areas and during rush hours". There is absolutely no mention of a metro, and no incentives to get people to give up their driving licences. From a business perspective, the budget mentions a number of schemes to incentivise companies to make dig- ital and sustainable investments. On a positive note, the govern- ment is restating its commitment to regulate temping agencies, set up a venture capital fund for start- ups, introduce incentives for family businesses, and unveil schemes re- lated to ESG for SMEs. The commitment to set up a spe- cialised commercial court is also commendable and hopefully goes a long way to address delays in the justice system. From a business perspective there are other ideas mentioned in the budget but which require much more detail. Budget 2024 maintains a steady course but lacks imagination and excitement. The Chamber of Com- merce diplomatically suggested as much in its post-budget reaction when it expressed eagerness "to see more tangible proposals that will provide the required impetus for a leap in quality, higher productivity, sustainable growth and improved competitiveness of our economy". In the midst of global uncertain- ty caused by war in Ukraine and the Israel, Caruana chose extreme caution. It may prove to be the best choice not to rock the boat, but it is certainly not the transformative moment the economy needs for medium to longer term prosperity. The Finance Minister's choices n August 2023, the seasonally adjusted volume of retail trade decreased by 1.2% in the euro area and by 0.9% in the EU, compared with July 2023, according to estimates from Eurostat, the statistical office of the European Union. In July 2023, the retail trade volume decreased by 0.1% both in the euro area and in the EU. In August 2023 compared with August 2022, the calendar adjusted retail sales index decreased by 2.1% in the euro area and by 2.0% in the EU. In the euro area in August 2023, compared with July 2023, the volume of retail trade decreased by 3.0% for automotive fuels, by 1.2% for food, drinks and tobacco and by 0.9% for non-food products. In the EU, the volume of retail trade decreased by 2.4% for automotive fuels, by 0.9% for food, drinks and tobacco and by 0.6% for non-food products. Retail Price Volume DID U KNOW?