No time for wet blankets

On Budget Day Lawrence Gonzi kept his promise. It was a positive budget on all counts; the country can now start reaping the fruit of its sacrifices, while the failed Jeremiahs who ad nauseam prophesised doom and gloom have been proved wrong once again.

Dr Gonzi's government has worked very hard to achieve this success. People were asked to do sacrifices. They felt the pinch and the government's popularity nose-dived throughout. The Prime Minister had repeatedly said that if his government succeeded in boosting the country's economy then he would take the necessary measures to ease some of the burdens. Many were sceptic. But the Gonzi administration seemed determined and optimistic, and on Budget Day, Dr Gonzi et al were proved right; they kept their promise without going overboard.

The pre-budget consultation meetings with the constituted bodies, trade unions, and civil society proved fruitful as the government had evidently listened to their suggestions and adopted most of them. The government has successfully managed to keep below the maximum three per cent deficit-to-GDP ratio as contemplated by the Maastricht criteria. The deficit is the lowest in more than 20 years.

The worst is now over, and we can, cautiously, move on; a breath of fresh air indeed. We are now witnessing a healthier economy, the third largest economic growth in the EU. UNCTAD, the UN agency, has put us among the top eight countries in the world that managed to attract the highest rate of foreign investment over the past three years. Success in education is astounding, no fewer than 70 per cent of 17-year-old students were seeking to continue their studies, up from 40 per cent six years ago. This coming year, the astronomical figure of Lm121 million will be invested in the education sector. In April, Malta had the highest number of people in employment.

The government is breaking records across the board and the future looks positive.

The budget for 2007 is definitely an important step towards stimulating enterprise, creating more work opportunities and encouraging growth. The government's nudging of the income tax bands in January 2007, a very welcome measure, is intended to target low- and middle-income earners. The budget also encourages people to work more, to spend more and to save more money. The energy voucher scheme will help low-income families deal with the energy surcharge. The decrease in the travel departure tax, which was unfair, was a step in the right direction.

The budget for 2007 has been met by a chorus of approval from the constituted bodies and trade unions, the exception being the Labour Party, notably its leader, Alfred Sant, who described it as "weak and hollow". The only positive aspect of the budget, in his opinion, is that the Prime Minister took less time to read it and that Dr Gonzi's delivery was good. Sad but true.

Fortunately, reality shows otherwise. The government has kept its promise and prospects look good. We don't have time for wet blankets now, the worst is over, let's just move on.