The Malta Independent 3 May 2024, Friday
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The Budget and what it takes

Malta Independent Friday, 13 October 2006, 00:00 Last update: about 12 years ago

This Wednesday is Budget Day. The exercise in the quality of numbers is presently taking place. The last touches should be in position by Tuesday morning. It’s now full speed ahead and presently the whole operation is in full swing with Parliamentary Secretary Tonio Fenech addressing us, his colleagues, in numbers rather than by name. One can say that the whole orchestra is in tune and, after a lot of work during the past years; the whole performance is taking shape.

Preparing the budget is no easy job. One has to coordinate not only the requests of the various ministries but also address ever increasing recurrent expenditure, capital outlays as well as the one-offs, which tend to pop up from here and there. There are also the people’s expectations to be considered.

This year, the government has issued, as was the case last year, a pre-budget document and some 13,000 plus voters/societies have expressed their opinion either by email, letter or otherwise. Some of the suggestions make a lot of sense and could even find themselves, one way or another, addressed next week.

As expected, there were also those who suggested that we either go to hell or come back; or that all of a sudden, we find the money to remove income tax, do away with payment of licenses and registrations. Well, you get the bad with the good. The preposterous suggestions find their way in the same mail with concrete and positive ones.

But then this is politics. There are those in our country who make suggestions in the better interest of the nation as a whole and there are those who think only of their subjective needs. One has to find that golden line which addresses the needs and expectations of both the country and the individual citizen.

Well, the homework is now nearing the last page, and in a couple of days it all goes to the printers for presentation on Wednesday at 6.30pm, after the Prime Minister officially goes to the President and gets his consent for the relative presentation in the House.

Discussion

Every budget gives us not only the opportunity to see how the country has fared financially but a chance of looking through a clinical eye at the operation of each ministry. In fact when the ministers meet with the Finance Ministry officials and present their requests, what follows is an informal grilling of what went right or what could have fared better and at which point priorities stand.

This examination will not only happen within the Finance Ministry’s ranks, the office of the Prime Minister, the Cabinet and government back-benchers. The honourable members on the opposition benches will have the opportunity to delve into the numbers too. They will no doubt assess if enough work has been carried out and then criticise and scrutinise with their interventions during the budget discussion. The ministries’ individual successful operation or otherwise will all spill out.

An analysis of the budget clearly shows that the government, as to finance, has its act in order. We are addressing the nation’s needs within our financial capabilities. If we can afford to live at the second floor, we are not pretending that we can risk taking up residence in the penthouse. We are calling a spade a spade and we look at challenges straight in the eye.

Furthermore, by and large we have been, at times with difficulty, able to address even the unexpected particular uncalled-for problems which have taken a lot of energy and finances such as the phenomenon of irregular immigration. Then we also address the needs of our people and what it takes for them to maintain and perhaps even better their standard of living.

Some may still feel that their grievances have not been addressed. I sincerely believe that the Prime Minister has his priorities right. In the past three years of government, the annual deficit has decreased substantially and the results are not only positive but are a good indication for the future. It is true that we have had to make sacrifices during this time, but we have come a very long way. Today we find ourselves in a sustainable and tenable position.

I am not revealing any secrets in stating that the deficit is below the three per cent threshold. If one compares this to the lowest ebb in 1998, under Labour, when the deficit stood at +/–Lm150,000,000, one realises that reaching this target has been achieved through a mammoth effort by all. Years of an uncompromising commitment and timely planning are finally giving results.

Kick-off

Open season regarding the budget starts with the Prime Minister’s address on Wednesday. A week later, the Opposition Leader will follow with his comments, to be followed, within 48 hours, by the Prime Minister’s words of wisdom.

Then each ministry will get its fair share of criticism. At the end of it all, notwithstanding all the positive or negative comments, every point will be talked about, shoved around and discussed. If the criticisms and comments make sense, the suggestions for change and improvement will be taken on board.

When the discussion comes to an end, with the final bill to be submitted for approval on 8 November, it will just mean that we have to shift one gear up as next year will present us with new challenges. In all this, our Prime Minister, if only for the sake of the nation, must and shall come out the winner.

Tony Abela is

Parliamentary Secretary in the Office of the Prime Minister

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