The 2006 budget, presented by the Prime Minister slightly earlier than usual this year, had the theme Nibnu fuq Hilitna (Building on our Abilities).
It is a budget that has addressed one of the government’s main objectives, the fiscal deficit, while holding fast to its social obligations.
The budget shows that, while the government is doing its utmost to curb abuse, it is focusing on key economic and social issues.
The cost-cutting and restructuring exercises in the public corporations that we have been hearing about for a number of months are now bearing fruit. The government is reaping the rewards, and this can be seen from the increased revenue collected from VAT and income tax without VAT or raised income tax actually having been increased.
The government is striving hard to ensure that Malta retains its competitivity. It has stepped back in the “commercial” market to give space to the private sector, offering it a number of incentives to attract new investment.
The Lm2.25 increase includes 50c to compensate for the surcharge on electricity consumption, which resulted from the increase in the price of oil. Pensioners will be getting this compensation in full this year.
While ensuring that public corporations remain sustainable, the government has increased the budget for pensions and social benefits, thus guaranteeing that all pensioners and all those receiving benefits do not fall below the poverty line.
The heavy investment in education, health and the environment substantiates the government’s commitment to social inclusion.
Training schemes, childcare and career guidance together with the investment of Lm1 million for the training of those who are aged over 40 by the Employment and Training Corporation, are all measures which indicate the government’s vision of social inclusion.
Last year the government launched two National Action Plans, one on employment and one on social inclusion. The measures taken in this budget enhance the government’s position in reaching the objectives set out in these two national plans.
The Lm3 million invested in the Housing Authority to purchase and refurbish old property to be allocated through various schemes is another way government is helping young couples and new families obtain decent accommodation at reasonable prices.
Although in the end there will definitely be those who are only interested in how this budget will hit their pockets ,and will only focus on the Lm2.25 increase, the measures announced by the Prime Minister will surely have a positive cascading effect on us all.
Education, health and the environment concern all of us. We will all benefit from a healthy economy, whether we are employers or employees.
The measures proposed in the budget for 2006 illustrate the government’s trust in the Maltese people. It encourages us to take on new responsibilities. It shows us that, as a nation, we have matured enough to seize the opportunities presented to us.
Gone are the days when the budget was a “ceremonial” event for the Prime Minister to announce petty price reductions and/or dreaded rises in taxation. Neither is the budget an exercise of “fooling around” (bazwir), as the leader of the Opposition suggested he would do if he becomes prime minister. Budget 2006 is truly a budget that demonstrates that the government is seriously geared up to meet future challenges while keeping Malta on the right track as a member of the European Union.
Michelle Mallia is president of the Nationalist Party Women’s Movement.