Finance Minister Clyde Caruana has questioned the Opposition’s understanding of public finances.

Speaking on Isma’ Dean podcast, Caruana said that over the past seven months, he has repeatedly sought to understand what the Opposition’s objectives tied to the subject of Malta’s public finances actually are.

He said he has asked the leadership of the PN what its concrete alternatives are and what are its objectives tied to this subject. “The Opposition criticises, but what will it do, what are its solutions?” he asked, suggesting that this fundamental question remains unanswered by the Opposition.

In his view, the issue is not simply a lack of communication on their objectives, but a deeper gap in understanding. Caruana stated that the PN appears not to have grasped the subject of public finances, “let alone talk about the subject” in a substantive way.

This lack of clarity, he argued, contributes to public uncertainty around the Opposition’s proposals. Policies by the PN have been announced, but without a full explanation of how they would be funded or what they entail.

When asked about what underpins Malta’s economic resilience, particularly amid a series of global shocks, Minister for Finance Clyde Caruana pointed to a combination of discipline and good management of finances.

While also tying it to economic diversification, he noted that recent years have tested Malta repeatedly, from the COVID-19 pandemic to the fallout of the Russia-Ukraine war, as well as ongoing instability in the Middle East and tensions in the Persian Gulf. Each of these events carried the potential to disrupt, but the Maltese Government shielded the population by means of having sound public finances in place.

In essence, Malta’s resilience, as outlined by the minister, rests on a dual foundation: a broad-based economy and a government that actively uses prudent financial management to absorb and soften external blows.

Caruana also addressed one of the more debated measures: the ‘super bonus’, and how it fits within a broader strategy of fiscal responsibility.

He argued that Malta is managing to give more back to citizens while simultaneously reducing its deficit. The key point, he stressed, is that these measures are not being financed recklessly or at the detriment of public finances. Instead, they are supported by stronger revenues driven by economic growth and efficient tax collection.