Malta Employers Association stresses need for ‘judicious use of public funds’

In anticipation of the forthcoming Budget, the Malta Employers’ Association (MEA) has issued its recommendations to the government, stressing it was crucial to reflect on the core purpose of this financial exercise: to ensure the judicious use of public funds contributed by honest taxpayers.

The MEA noted reports on numerous scandals that have reached the Courts, eroding public trust in the country’s institutions, the rule of law and fiscal integrity, particularly concerning the misuse of taxpayers’ money.

“The misuse and mismanagement of public funds has had severe repercussions on government public recurrent and capital expenditure across several areas, not least healthcare, electricity infrastructure, sewage systems, research and innovation projects at the University, and social benefits,” the MEA said in a statement.

The association added: “Ironically, private employers are expected to carry the cost of certain social measures that by definition should fall under the responsibility of the State. These include maternity leave entitlement, financed through private contributions to a fund.

Other examples include the first three days of sick leave for every episode of employee sick leave, penalties in lieu of employing persons with disabilities, and plans to fund family-friendly measures in the coming years.”

The association said it deplored all instances of mismanagement and fraud brought to light.

“It is unacceptable that public funds, meant to be wisely and fairly redistributed to enhance national competitiveness and improve citizens’ lives, are allowed to be unscrupulously wasted or misappropriated.”

The MEA said the situation has exposed gross deficiencies in our national structures,  standards and capacities for oversight, enforcement, accountability and long-term planning.

The MEA’s recommendations for the 2025 Budget include reversing the deficiencies in planning and enforcement mechanisms and a renewed sense of economic direction to prioritise smart and environmentally feasible export-led growth that focuses on quality and innovation rather than quantity.

The association also recommended urgent reforms to ensure greater transparency in the management of public funds and the prioritisation of infrastructure and competitiveness-enhancing investments that directly benefit the country.

“The judicious use of taxpayer money is not just a fiscal responsibility; it is a moral imperative,” the MEA said.

The full statement, including detailed recommendations, can be read here.