Last year’s budget edition front page headline was ‘Shock absorber’. It raised eyebrows in some quarters, but in hindsight, it proved to be correct.

2012 was a very difficult year for Europe, yet Malta was one of the few countries that coped relatively well, maintaining good employment figures, registering economic growth and preserving the standard of living.

There were no major hikes and life has, more or less, carried on as it did before the crisis hit – bar the hike in utility bills. This time round, the government has already said that it will not be using the budget as an electoral tool, with Prime Minister Lawrence Gonzi saying he would rather trail in the polls than be irresponsible with the country’s finances – of this we are glad. We commend the government for making the bold declaration and we commend it for sticking to the policies which have seen the country weather the most of the storm that has threatened to engulf us all.

The government has also made a token gesture in pledging to reduce the income tax rate, in order with its electoral promise in 2008. So what will we see in the budget this time round? We expect the government to keep on the same tack. We know, by now, that utility fluctuations do not fall in the government’s budgetary measures.  No doubt, they will increase over the next year. But what we do expect is for the government to continue to spend on education and to keep pushing for the creation of jobs through foreign and local investment. It is true that huge multi nationals do employ a lot of people, but we must never forget that the backbone of the economy is small and medium enterprises. Around Europe, these small businesses have all been gobbled up by chains and franchises. When the bubble burst, the chains went bankrupt and pulled out, leaving a huge vacuum that has not been filled. It has meant joblessness and misery in many countries around Europe and when those jobs disappear, it is time for austerity and that means more taxes being imposed on more unemployed people. As we have seen in Greece, Portugal and Spain – it is a recipe for disaster.

What is expected of this government is more responsible decisions. It is not a time to dangle the financial carrot. It is a time to consolidate and fine-tune in areas where it could have done better – this time with the benefit of hindsight.

The government should also not be afraid to hike up the prices of tobacco products and other products or entertainment services that can cause health issues. Social partners yesterday warned that the country would have to deal with the consequences if the budget is not approved and is shot down. And we appeal for common sense. It is Christmas time and the election is truly round the corner, no matter what. The PL has already said that it will ‘retain’ the ‘good parts’ of the budget, so we invite it to back it. Even if the party stand is to vote against it, then any politician who truly has Malta’s best interests at heart should just go ahead and give it the thumbs up. Franco Debono has stuck to his guns in saying that he will vote against it if Austin Gatt is not removed. Well, so be it. If he has the courage of his convictions, he should go ahead and do so – if he believes that it is the right thing to do. But we do not. As we have said, the election is round the corner anyway. The government knows what the finances are like and it is in the best position to draft a plan which will see Malta through a tough 2013.