The Malta Independent 20 April 2024, Saturday
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Budget day: What’s to be expected

Monday, 17 November 2014, 07:39 Last update: about 10 years ago

There was a time when the day dedicated to the budget was one of tension and apprehension. The build-up was secretive and there were no indications on what to expect, other than some reductions or increases in the price of tuna, corned beef and milk. It is a different story today. Past Nationalist administrations started a system in which a pre-budget document was presented in summer, giving an idea of where the government wanted to take the country, with civil society, constituted bodies and individuals giving their feedback on how things could be made better.

This practice was picked up by this Labour administration, and so there will not be any surprises tonight when Finance Minister Edward Scicluna explains the government's plans for next year.

We already know that the cost of living increase will be the lowest in history at 58c per week, which is not enough to buy an extra can of baked beans. But we also already know that the government is planning other ways with which to deal with protests that the meagre rise in COLA will not be enough for families. We also know that, as much as possible, the government will not impose extra burdens on industry, which will start benefiting from reduced energy tariffs as from March.

What the people expect from the government tonight is a clear sense of direction. With industrial production going down and with employment in the private sector not going up - the criticism levelled at Labour for employing too many people in the public sector has been frequent in the last 18 months - the government must make it clear that it means business when it says it must push the Maltese economy forward.

If people have less money to spend, they will not spend any and instead try to save a few cents here and there, which will mean a more stagnant economy and less of a feelgood factor. This is why, given the low COLA, the government must be seen as taking measures to encourage people to consume a little bit more. It must also offer new incentives for industry to invest more, as this would mean more jobs in the private sector and, hopefully, a reversal of the trend which in the past year-and-a-half, has seen the government's coffers being increasingly burdened with the salaries of an overabundance of civil servants. The costs in health, education and social services, as is usual, will continue to rise but the government here must be seen to take action on those who abuse the system. The money should go to those who really need it, not to the crafty ones who know how to cut corners.

 

 

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