After 18 parliamentary sittings and no fewer than 52 hours of debate on the Budget for next year, many are still not quite clear as to the real state of the country’s economy. Politicians from the two main parties give a different picture, with those on the government side highlighting the advances made in practically all sectors and the Nationalists pointing to the red light showing in some aspects of the economy.

At times, the discourse is so vastly different from each other that they make it sound as if they are speaking of two different countries altogether.

However, since most people have come to expect this with every presentation of the financial estimates, few give serious attention to what the politicians say in the debates. All that many care about is what they are going to get out of the Budget and how much more they are going to pay in taxes.

To boot, this year’s Budget was completely overshadowed by a shooting incident involving the driver of a Cabinet minister (since removed), a matter that developed into a major political issue.

It is greatly disturbing that politicians are invariably unable to come round to discuss in a completely objective manner such a bread-and-butter issue as the Budget. What ought to be an exercise in seeing, among other things, how best to utilise the government’s financial resources, is turned into a political charade, similar to what the country experiences at election time.

Keeping the finances in order and reducing the national debt will remain the country’s two main challenges next year, more so if the government wants the European Commission to lift the excessive deficit procedure against Malta. According to the Minister of Finance, the government is aiming to reduce the deficit to 1.6 per cent of gross domestic product next year. He admits the target is very ambitious, but he is banking on an economic growth rate of 3.5 per cent. Even this may be a bit ambitious.

The minister, Edward Scicluna, is confident that this year the deficit will be of 2.1 per cent of GDP. He is also expecting the national debt to fall to 69 per cent. Employment is up and, at 5.6 per cent, the unemployment rate is the third lowest in the EU.

However, the situation is not all that plain sailing for the Opposition, whose spokesman on finance argues that, despite all the government’s declarations that the government’s finances are on track, it appears that the targets for this year would be missed.

As to the Budget for next year, it is not just the Opposition that is expressing some doubts. Even though, as the Finance Minister said, the European Commission may have accepted the Budget for next year, it said Malta was off-track in debt reduction.

There are a number of other key issues that have yet to be cleared up. One of the most important is how exactly are the energy tariffs cuts going to be financed in the period up to the time the energy project comes on stream.

Also to be factored in is the subsidy for public transport. Difficulties in manufacturing industry should not be downplayed either. In short, while the economy has continued to move ahead, there are problems that require close attention.