Editorial

Cynics may well write off the benefits of pre-budget dialogue meetings, arguing that since it is ultimately the government that finally decides on the shape a budget takes, it is useless going into such discussion beforehand. In other words, they feel the exercise is essentially a political gimmick.

This is true only up to a point, for active civic participation in a country's affairs, through local councils and meaningful consultation with representative bodies and even directly with the public, helps bring about greater cohesion and understanding of the work required to improve living standards.

It was with this aim in mind that the government launched its first pre-budget document in 2006. It was called A Better Quality Of Life, a title that encompasses the aim of the annual exercise. As it is often stated, a country's budget is not merely an account of income and expenditure but, also, an exposition of the government's intention to steer the economy and the country in the right direction.

The government yesterday kicked off a series of meetings in preparation to the drawing up of its pre-budget document at the end of June. This will be the government's last budget before the country goes to the polls. Although it is still early on the government's part to announce the date of the next general election, the Nationalist Party's general secretary has strongly hinted it may be in May.

At least this is how most have understood the comments he made in an interview to this newspaper some time ago. When asked for his view on the best possible time for the election, he said: "The best period is May (2008). For me that would be the best time and the time that makes most sense... both logistically and from a common sense point of view". It does sound fair to conclude from this that what is best, at least logistically, for the general secretary is good enough for the Prime Minister, in whose hands the decision ultimately lies.

If May is indeed the time the Prime Minister also has in mind for the holding of the next election, then the presentation of the budget would most definitely be considered as, more or less, the beginning of the electoral campaign. For quite some time now, the government has in fact already been transmitting the message that its work had been producing results. Using the budget for 2008 to prove this even further by, for example, improving the pensioners' lot, would help it consolidate its ground for the electoral campaign. To what extent the country's economic situation and the government's financial position will allow the administration to do this remains to be seen.

But up to now, and however much Labour try to discredit any of the economic figures presented, economic indicators do show an improvement. The deficit is below three per cent, inflation is down and the gross domestic product is even higher than that forecast. The country is in line for the adoption of the euro at the beginning of next year, and preparations for the changeover are now in full swing.

Whatever the subjects being discussed at the dialogue meetings, and there are a number that may, in a way, indicate the way the government is thinking, there are certain parameters that remain an essential part of the bedrock of good administration and governance. One of the most important is ensuring sound economic management. Irrespective of whether or not the country is moving towards a general election, the government would have to keep firm to this principle.