The government presented its budget for 2012 last Monday. The feedback that people are giving me is that the budget has addressed many concerns.
In this climate of turbulence in Europe and elsewhere, where governments are struggling to find their feet, with already two prime ministers calling it a day, and where too many countries are dealing with serious problems, Malta was expected to follow suit.
This did not happen, not out of a gamble, but out of prudence. You cannot see this budget on its own, as it cannot stand on its own because it must be seen in the context of the previous budgets. This line of thinking – that of a cautious government – has been present all throughout this term which, it must be admitted, has been characterised by bad economic news from all around the world, including in our European partners.
Malta has been weathering the storm for three years now. It has been defending what it acquired over the years, and, yes, making small, steady steps towards the future.
Other governments in Europe are introducing so many austerity measures that to list them will take up pages. Many expected our budget to go down that road too, with reductions in wages, conditions, pensions and the lot. To great surprise for the Opposition and its followers, the budget started rolling up schemes, incentives and hand-outs that not only will improve our living conditions, but keep us competitive. It addressed the family as a unit.
We were getting used of hearing the doom and gloom and the promised land of milk and honey after 2013 elections under a Labour government – in actual fact we are living in it right now. Of course it could be better, of course we would like to say that Europe has no problems, but we did not. We spoke the truth.
We have reduced the income tax burden by €10 million. It would have been super to take off €40 million, but in the prevailing circumstances it would have been suicidal. The minimum children’s allowance was increased, the maternity leave issue was addressed, people over 80 years of age living at home will receive a €300 grant, television licences will be abolished and all employees will get a €4.66 weekly increase.
These are a few measures announced on Monday. It seems that the promised Labour Party electoral manifesto is being implemented by the Nationalist Party in government. I would rather have action taken now rather than promises. Remember the promise they made to remove VAT?
The buying of more expensive oil will be compensated by reduced consumption at the new Delimara power station. So Delimara will be useful after all to all Maltese families!
The new income tax computation for parents will see an average saving of a further €120 per year per person. If you have to accumulate all the benefits, the family is certainly better off with the Nationalist Party, in spite of the difficulties we are facing.
Yes, we could grumble about the bus routes, but certainly not about the bigger picture, where government has excelled.
However it’s the bad news that travels fast in Malta, while people are working for the benefit of the country. Truth will and does prevail.
Robert Arrigo is parliamentary assistant in the Finance Ministry