Social policy in the context of a balanced budget in the Maltese islands

Abstract

This study relates to the changing role of the state in welfare financing, in a country that is pursuing the objective of fiscal consolidation. It explores the current state of both the public finances and the welfare system in Malta. It also analyses the proposed reforms that have to be implemented to the social policy in respect of education funding, pensions and healthcare. The main thrust that emerges from this analysis is that Malta is required to rely more on the principle of self-help and it needs to apply with greater vigour tax compliance and services accountability. These measures have to be applied with immediate effect, in order to achieve a balanced budget by 2010.