Issue link: https://maltatoday.uberflip.com/i/1541179
THE debate surrounding this year's budget has highlighted a familiar tension in Malta's pol- icymakinwg: We are increas- ingly generous in our social ambition, yet still limited in our capacity to measure, prioritise, and deliver. The budget offers comfort, stability and reassurance, espe- cially in areas such as pensions, family support and reductions in income tax. The announce- ment that White Rocks will be converted into a public park also signals an important shift toward valuing quality of life, open spaces and collective wellbeing. These are meaning- ful signals of a country that is thinking not only about eco- nomic growth, but also about how it wants to live. Yet, the challenges Malta fac- es are structural. We must sus- tain economic resilience in the face of demographic ageing, de- clining fertility, environmental pressures, and a labour market that has grown by expanding its size rather than its productivity. This model has created growth, but it is reaching natural limits. The next phase requires mov- ing from expansion in numbers to expansion in value. This is where implementa- tion becomes central. Malta needs to shift from budgeting for activities to budgeting for outcomes. Performance-based budgeting can help ensure that policy measures deliver the re- sults they promise. This system focuses on defining clear objec- tives, identifying measurable indicators of success, and link- ing public spending to evidence of impact. It allows government to ask not only how much is being spent, but whether the spending is improving lives, strengthening capabilities and delivering long-term value. Many of the budget's meas- ures are socially constructive. Increases in pensions and chil- dren's allowances support dig- nity and inclusion. The exten- sion of first-time buyer grants, preferential stamp duty on in- herited homes and incentives for family business succession help sustain family formation and intergenerational equity. The salary incentive scheme for long-term employees, expand- ed Micro Invest credits and tax deductions for research and innovation encourage enter- prise stability and skill reten- tion. The extension of grants for electric vehicles and incen- tives for alternative transport signal a broader environmental awareness. However, these measures must now be situated within a clearer strategic frame. Vision 2050 aspires to a Malta that is greener, more innovative, more inclusive and more pro- ductive. It imagines a country that invests in its human capi- tal, restores its natural environ- ment, improves mobility and infrastructure, and strengthens trust in institutions. The values underpinning that vision are widely shared. The question is how to translate them into se- quencing and delivery. Rebuilding public trust Systematic impact assess- ments should become stand- ard practice. Before a measure is introduced, government should specify the expected outcomes and how success will be tracked. During implemen- tation, spending reviews should assess whether the intend- ed results are being achieved. Programmes that perform well should be scaled. Programmes that underperform should be redesigned or phased out. This is how to create fiscal space for real transformation without continuously expanding ex- penditure. This is also how to rebuild public trust. Citizens need to see that policy is not only gen- erous, but fair, strategic and effective. They need to see that the measures being funded to- day contribute to a stronger, more resilient and more cohe- sive society tomorrow. Malta is at a moment of pos- sibility. We have a socially ambitious budget that offers stability when it is needed. We have political proposals that in- troduce new ideas for intergen- erational opportunity. We have a long-term vision that places wellbeing, sustainability and innovation at the centre of our national trajectory. The challenge now is to bring these elements togeth- er through disciplined imple- mentation. The task is to move from announcing measures to demonstrating results, from expanding expenditure to im- proving its quality, from talking about change to building the systems that make change pos- sible. Tracking policy In the end, what matters is not only what we spend, but what that spending creates. The future will belong to the Malta that can measure what matters and remain committed to learning, adapting and im- proving. To do this effectively, Mal- ta must also develop strong- er policy coordination across ministries. Many of the most pressing issues we face; fer- tility, productivity, housing affordability, educational per- formance, transport efficiency are not problems belonging to a single ministry. They are sys- tem challenges, shaped by the interactions of multiple policies and incentives. For example, lowering tax rates for parents is positive, but the impact will be limited without addressing housing costs, childcare avail- ability, work-life balance prac- tices in the private sector, and urban environments that sup- port families. Similarly, busi- ness incentives can stimulate entrepreneurship, but without improved skills training and re- search capability, we risk subsi- dising activity without increas- ing value. This is why institutional ca- pacity matters. The Vision 2050 documents recognise the need for stronger governance frame- works, better data systems and more transparent monitoring practices. But vision requires translation into administrative reality: Clear lines of account- ability, shared targets across ministries, and an annual per- formance dialogue between government, social partners and independent oversight bodies. Policy becomes credible when it is trackable. Civil society, local councils, employers and educators all have a role to play in this shift. The next phase of Malta's de- velopment must be co-created rather than centrally adminis- tered. A future-focused econ- omy depends on participation, not just provision, on citizens who feel ownership over the country's direction and confi- dence that public institutions act with integrity and purpose. The task is to shape None of this diminishes the importance of the budget's sta- bilising role. Social reassurance matters, especially at a time when many feel stretched, un- certain or disconnected. But reassurance cannot be the end point. It must be the founda- tion upon which we build a more capable, collaborative and forward-looking society. The path ahead is not about choosing between comfort and ambition. It is about recognis- ing that true comfort comes from capability, and true social protection comes from systems that are strong, coherent and responsive over time. The task now is not simply to spend, but to shape; to ensure that every euro invested strengthens Mal- ta's capacity to grow, care, cre- ate and thrive. 15 maltatoday | SUNDAY • 9 NOVEMBER 2025 JP Fabri Economist Measuring what matters OPINION