The Justice and Peace Commission, within the Archdiocese of Malta, welcomes the social measures in Malta’s 2025 Budget, but believes more should be done to secure a dignified standard of living for those facing economic hardships.
The Commission also stresses the need for ongoing improvements to address the broader social needs of vulnerable groups — especially the elderly, homeless, and migrant workers — who face significant barriers daily.
Acknowledging the government’s pledge for “quality”, the Commission argues that this goal requires more than monetary support; it needs policies that foster the integral development of every person, nurturing a truly inclusive, resilient community and a fairer economy for all.
Supporting families while addressing root economic issues
The budget prioritises immediate support for workers and families with measures such as increased cost-of-living adjustments, children’s allowances and tax relief.
These aim to alleviate some of the financial strain on households facing rising costs. However, they do not address the root causes of economic vulnerability that leave many families financially insecure.
Untaxed minimum wages help low-income workers retain more earnings but do not create pathways for economic mobility. Similarly, adjustments to tax bands and temporary relief measures do little to establish a robust social safety net.
Zero VAT on essential sanitary products is a positive step, but given Malta’s rising cost of living, more comprehensive assistance — such as affordable food and housing — is essential.
While pension increases are welcomed, retirees may still struggle to secure a dignified standard of living without significant measures to counteract inflation.
The imperative for quality education and healthcare
Investments in education and healthcare underscore their importance for social equity. Higher teacher salaries, improved school infrastructure and expanded community health services are promising.
Yet, insufficient educational resources and training for teachers limit efforts to meet students’ diverse needs. Investments in high-tech skills — such as AI, data science, and engineering — reflect forward-looking economic goals, but without clear pathways from education to employment these efforts may not equip youth for workforce demands.
Collaboration between educational institutions and industries, coupled with targeted programmes for underrepresented groups, would ensure young people have the skills and opportunities needed for success.
In healthcare, the budget’s allocations — including a new Acute Psychiatric Centre and expanded mental health resources — are commendable. However, mental health concerns in workplaces remain unaddressed.
A holistic approach to workforce well-being should include fair wages and safe working conditions in high-stress sectors. Such policies are crucial for community stability, and the Commission urges a more comprehensive strategy that prioritises worker well-being to foster dignity and stability.
Addressing Malta’s affordable housing crisis
The government’s initiatives like ‘Rent to Assist’ are critical for supporting low-income families. However, the Commission stresses the need for an evaluation system to ensure these schemes are effective and adaptable to changing needs.
Expanding initiatives further would better address the ongoing housing crisis and provide stable access, especially for marginalised groups. Prioritising these communities would help build an inclusive housing landscape that promotes social cohesion and stability.
A unified approach to environmental and urban planning
The budget’s green incentives reflect a commitment to sustainability, but they often focus on individual choices, rather than broader environmental transformation.
Promoting sustainable public transportation and reducing car dependency are crucial steps to improve quality of life and tackle climate issues on a meaningful scale.
Investments in AI and tech-driven sectors position Malta as a potential technological hub. However, to drive progress, these advancements must align with cohesive urban planning strategies. An integrated approach that combines renewable energy, waste management, and urban planning is essential for achieving lasting environmental justice.
Inclusive growth, workforce resilience and migrant empowerment
Malta’s commitment to equitable workforce opportunities, like the Equal Pay for Work of Equal Value initiative, is a step forward. However, the Commission highlights the need for a broader strategy addressing the unique challenges faced by migrant workers, ensuring fair wages and job security. Additionally, the potential inflationary effects of implementing equal pay must be carefully considered.
Conclusion: Embracing holistic social inclusion
While the Malta Budget 2025 addresses key social, economic, and environmental issues, many measures only provide incremental relief. The Justice and Peace Commission emphasises that short-term assistance must be paired with strategies targeting root inequalities. Continued investment in social infrastructure, secure housing, and workforce fairness is essential for fostering a future where every individual can reach their full potential.