The 1985 Dire Straits rock song ‘So far away’ has eloquent lyrics. “You’re so far away from me I just can’t see” is a growing feeling amongst various categories in society when thinking of government and its 2016 Budget. After just two years in the driving seat, government is driving away from people who were promised a government who care. Politicians need to engage with the hoi polloi not on the eve of the general election but throughout the whole legislature. The 2016 Budget measures show that government is disconnected from the daily realities and hardships of people living on hand-to-mouth income. The smell of the electorate sweat has already become a nuisance to most sitting in air-conditioned offices on the government side.
Can we have some new thinking please?
Yes, we can. All boils down to whether we want to enter into a new forma mentis or not. This may not be music to one’s ears, but it is important if the national good is to be allowed to prevail and flourish.
After the 2016 Budget was announced, the immediate reactions from most of the social partners were rather positive although caveats were made. Government, or rather the finance minister Prof Edward Scicluna, should be complimented for entertaining proposals from the social partners during the pre-budget consultation process. The Minister’s experience, gained during his tenure as MCESD chair during the previous administration, is paying off. The social partners may feel strongly about certain proposals which have been left out or were addressed superficially. This may become a sore point.
One of the sore points which must be common to all of the social partners and to the rest of society emerges from data published by Eurostat just days after the 2016 Budget was announced. According to the data, the number of people “at risk of poverty or social exclusion” in Malta has increased from 20.1% in 2008 to 23.8% in 2014. Malta also scored less than favourable in the “at-risk-of-poverty after social transfers” classification, which also registered an increase from 15.3% in 2008 to 15.9% in 2014. In the “persons severely materially deprived” segment, Malta again made a poor showing with a considerable surge from 4.3% in 2008 to 10.2% in 2014. Very disappointing indeed, especially in the light of the pre-election promises of the party now in government. And yet again, in the cohort of “persons aged 0-59 living in households with very low work intensity”, Malta registered more negative figures, rising from 8.6% in 2008 to 9.8% in 2014.
In contrast, GDP growth for 2015 is forecasted at 4.2%, while 3.6% growth is expected in 2016. A budget deficit of 1.6% is expected for 2015, further decreasing to 1.1% in 2016. Inflation rate currently stands at 1.0% and is expected to increase to 1.8% in the coming year. Unemployment rate is currently at 5.8% and is expected to decrease to 5.6% in 2016. Wage increase is set at €1.75 per week from January 2016.
Despite the positive numbers here, it is clearly evident that the economic growth is not reaching the vulnerable in our society, whose numbers continue to increase. Unfortunately, the state fails them.
This injustice becomes an even more gross when government is frequently very generous with public funds with a small group of PL cohorts. There is nothing wrong in appointing PL supporters or officials to consultancy positions. However, these appointments are looking more like gifts for shouting PL than anything else.
Appointing consultants to ministries, public authorities, entities and agencies has, prior to the last general election, been marketed as highly abusive by the leading spokespersons of the then Opposition. This frame of mind has now all changed. It seems that there are no scruples or red faces when it comes to the remunerations paid to the politically-appointed consultants.
The PL spokespersons, who loudly expressed their disgust at the increase in salary of the former ministers and parliamentary secretaries, are now pocketing thousands of euros for consultancy services and an assortment of other appointments. Earning six figures in a relatively short span of time is not bad at all. It is good enough reason to work to oust former consultants.
What a pity, actually a great pity.
What could have been a complete shift from the traditional political divide has become highly unlikely. If anything, the rift is widening in many aspects, not only political but also economic. This administration is fuelling division and putting the pressure on successive governments who will now be expected to entertain those who support them. Only those in the inner circle are assured of a higher standard of living irrespective of the budget measures. The 2016 budget measures are a case in point.
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