It is quite clear that the budget presented by the government is an election budget, but not in what we have begun to accept in the literal sense.

The Finance Minister announced a number of measures which are intended to encourage the electorate to plump for the incumbent administration. Not that the measures themselves are bad, but they have been specifically designed to dangle the carrot in front of the voter – most notably the income tax rate cut.

The fact that the pledge is spread out over three years shows that the government is declaring that if people want this cut, they have to be prepare to invest in another term entrusting the Nationalist Party to govern the country.

There are, of course, other measures which are positive. We cannot help but notice the increase on the price of cigarettes and other tobacco products. Also, we note that the government has continued to increase its expenditure in the education and tourism sectors in particular. At the same time, the environment continues to benefit from small measures introduced here and there that continue to incentivise us to change our habits and opt for more energy efficient and less polluting practices.

In the same field, we note that there has been more attention given to creating more green and open spaces. But there is no big “Wow” factor. In short, the PN government has put together a budget which is designed to offer stability. There is nothing major about it. And although there is no austerity there, there is a clear sense of “if you want more money to spend, you have to be prepared to wait for us to spend”.

Budget 2013 is generally a sensible one. In drawing it up, the government has shown that there are no excessive austerity measures that need to be imposed. In turn, it is showing that Malta is not looking to brace against huge external shocks to the economy and that the government is looking at ways of encouraging people to be more confident in their spending.  It is sensible, but it does lack a bit of the ‘Wow’ factor.

The most important factor at stake here is that it is, in fact, an electoral budget. But not with the sense of spin that had been put on it by the opposition party prior to its announcement. This is an electoral budget because the PN is giving people a sneak peak of its electoral programme. The most important of the measures announced – such as the reduction of income tax – are phased over a number of years. They do not kick in automatically and there is no immediate benefit to be had. But in doing so, the government is dangling the electoral carrot. While we have already said that there is nothing that jumps out at you, there is a welcome pledge for a cut in income tax. There is also a gradual phasing in of more benefits for the elderly.

There are, of course, very welcome measures, such as the increase in children’s allowance, the scrappage scheme, restoration grants, rebates on PV panels, subsidies on energy and continued investment in education and tourism.

Equally, there is the welcome decision to increase the price of tobacco products by 6 to 8 %. Aside from the fact that no stone should be left unturned in discouraging people from engaging in the habit, we must look at the long-term effects it has on our finances. Smoking related illnesses are a big burden for the economy and society in general – it might sound brutal – but even this is a matter of long term financial gain.

The environment seems to be very much a work in progress. Various bits and pieces were mentioned but it largely seems to be a continuation of what is going on. Not that this is a bad thing, habits are slowly changing and we are seeing more green spaces popping up here and there, but there seems to be nothing major announced. On the other hand, we forget quickly. The regeneration of Maghtab – no mean feat –has been going on for years.

It is also good to note that the government seems to be starting to listen to people. Two cases in point –  the funds allocated for an animal shelter and the decision to build a rugby pitch. Last year, the government was accused of not listening and not being in touch. In these two token gestures, it has shown that it is trying to listen to popular opinion.

All in all, it’s good. As we have said, taken in the context of the European scenario – we really should have nothing to grumble about. Perhaps the mere fact that we are finding faults in it shows that we really do have it good. But on the other hand, this is what we are to expect. We are citizens of a European nation that is now supposed to be developed and one of the best performers in the EU. We are told that we are performing so well, yet the benefits are only trickling through slowly. Perhaps that is why we are still ok while others around us flounder. This is good, but it is bland. And that shows just how greedy we have become.