Quinco Chairman criticises Budget 2027’s focus on consumption over competitiveness

Norman Aquilina, Executive Chairman of Quinco Holdings, has criticised the Government’s expansionary Budget 2027, arguing that its measures focus too heavily on consumption rather than productivity, innovation and long-term competitiveness.

In a post on LinkedIn, Mr Aquilina questioned the purpose and beneficiaries of an expansionary budget, asking: “Government described Budget 2027 as ‘expansionary’, but for what and for whom?”

He argued that expansionary budgets are generally appropriate during economic downturns, when demand is weak and unemployment is high, conditions which he said do not currently apply.

“This is not an economy that needs a demand stimulus. It is an economy facing supply-side pressures, infrastructural strains, and growing competitive pressures,” Mr Aquilina wrote.

He also questioned the Government’s emphasis on “quality growth”, arguing that the announced measures are more focused on stimulating consumption than improving productivity.

Mr Aquilina said the Budget contradicts the Government’s stated strategy of promoting productivity, innovation, artificial intelligence and higher-value growth, pointing to energy subsidies as an example.

“You cannot say you want productivity, innovation, AI, and higher-value growth and then allocate your biggest single line item to keeping energy artificially low for everyone, including low value-added, energy-intensive volume operators,” he said.

Instead, Mr Aquilina argued that an expansionary Budget introduced during a period of rapid economic growth should prioritise targeted investment in skills, automation and the foundations of Malta’s competitiveness.

Beyond the Budget’s strategic direction, Mr Aquilina said its approach to allocating support was a defining feature.

“More than strategic direction, what stood out in this Budget was selective intervention,” he wrote.

He concluded that Budget 2027 would be remembered more for its distribution of benefits and political appeal than for structural reform and sustainable economic growth.