This Directorate focuses on structural economic matters and tax and benefit policy. It monitors the tax system, proposes changes to meet Government objectives, estimates the impact of budget measures, and contributes to the National Reform Programme. The Directorate also provides input on issues related to social security, labour market developments, and the competitiveness of the Maltese economy.

The Directorate uses quantitative techniques, including models like QUEST for the National Reform Programme and EUROMOD for simulating the distributional impact of budget measures.