Issue link: https://maltatoday.uberflip.com/i/1510993
16 maltatoday | SUNDAY • 5 NOVEMBER 2023 BUDGET2024 CONTINUED FROM PAGE 15 Nevertheless, the effective- ness of these measures may depend on whether the extra cash is eroded by inflation, potentially triggered by the rising cost of living in a budget lacking a long-term strategy for controlling food prices. For now, the budget could offer a glimmer of hope in a rather bleak scenario, as re- vealed by the MaltaToday survey, where 69% of all re- spondents and 87% of current non-voters believe the coun- try is moving in the wrong direction. The impact on disgruntled Labourites The MaltaToday survey al- so highlighted other demo- graphics with higher propor- tions of non-voters, including residents in the southeast- ern region (36%) and the South Harbour region (32%). The high rate of non-vot- ers in these traditionally La- bour-leaning regions aligns with the increasing percent- age of non-voters among La- bour supporters (29%). This suggests that inflation has negatively impacted the per- ceptions of these voters, even on issues like corruption and the environment. Avoiding Gonzi's fate An educational breakdown further revealed that non-vot- ers peak at 37% among those with post-secondary educa- tion, meaning respondents who continued their educa- tion after secondary level but did not attain a university degree. In this category, 46% have witnessed a deteriora- tion in their personal financ- es, compared to 38% among those with a university degree. This is significant because the Labour Party has consistently gained support in this aspi- rational category since 2008, which was traditionally more aligned with the National- ist Party. A pivotal issue that swayed these voters towards Labour was the surge in elec- tricity bills during the Gonzi administration, which played a crucial role in shifting the perceptions of this demo- graphic towards what they viewed as a distant and insen- sitive government. This is why the Finance Min- ister stressed in his speech that the government was fo- cusing on the middle class by allocating a substantial €350 million for energy and fuel bill subsidies, aiming to prevent a repeat of the issues faced un- der the Gonzi administration. Furthermore, Caruana has committed the government to maintaining these subsidies until 2026, one year before the general elections. One fluke which may nega- tively impact the post-second- ary educated category would that of having a larger por- tion of their income taxed at a higher rate when the COLA increase is factored in. More affluent voters marginally impacted However, certain demo- graphic groups, such as more affluent tertiary-educated in- dividuals who lean towards the Nationalist Party and among which 36% intend not voting, see only marginal im- pacts from the budget. With the government com- mitted to allocating a signif- icant portion of its expendi- ture on subsidies until 2026, there is limited room for the government to introduce tax cuts that would benefit this category. Their views may al- ready be clouded by distrust in the government, particu- larly regarding issues like corruption and governance. But although traditionally PN leaning this demographic may also include a significant por- tion of floating voters which were crucial in Labour's con- struction of a new majority, sustained over three consecu- tive elections. How red is Clyde's budget While electoral considera- tions may be at play, Clyde Caruana's fiscally prudent budget also reflects a social democratic orientation and a specific focus on the most vul- nerable, evident in increased pensions, benefits for cate- gories like carers of disabled individuals, and a minor in- crease in the minimum wage. However, the indiscriminate allocation of energy subsidies constrains the government's ability to eradicate pover- ty with more transformative measures. The sustainabili- ty of government spending hinges on sustained economic growth levels, at a time when even Labour voters are in- creasingly concerned about the collateral damage caused by the economic model, in- cluding growing apprehen- sion about foreign workers and unceasing construction. Although the government seems eager to convey the message that it is 'correcting' this economic model, through measures like increasing the stamp duty on properties in Gozo to match the nation- wide level and introducing skill cards for workers in the catering industry, the budget falls short of outlining a new direction for the country. 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