The Budget for 2013 was approved unanimously by the House of Representatives this evening in a scene which could not have contrasted more sharply with what happened in December.
The Budget was defeated in a tense sitting in December when the then Labour opposition and Nationalist MP Franco Debono voted against.
The same exercise, with the same measures and slight changes to financial projections was presented once more by new Finance Minister Edward Scicluna on Monday and approved through all stages today, the House having met practically all day yesterday and today. The tension was gone, with MPs from both sides chatting in the Chamber and the Deputy Speaker twice asking them not to be a distraction to whoever was speaking.
There was also laughter when the Deputy Speaker called Joseph Muscat 'Leader of the Opposition'.
The debate was concluded by Deputy Prime Minister Louis Grech, Finance Minister Edward Scicluna and Dr Muscat.
Mr Grech reiterated the government's commitments. He said that his ministry was working to ensure that delayed infrastructural projects did not lose EU funds allocated to them.
The government, he said, would soon present its projects for funds under the new EU Budget and it would work to ensure the maximum absorption rate by Malta.
Prof Scicluna moved a transitory amendment to cover the spending of the first two months of this year by the ministries as composed at the time.
He said the purpose of this Budget was not to announce new measures, but simply to get the funding provisions through. This was a Budget prepared by the old government which should have been approved a long time ago, and the new government was focused on its own first Budget.
It was to be expected, he said, that the former finance minister had defended his figures. This government, he said, had not touched last year's figures other than to publish actual figures instead of projections, where possible, such as with regard to the deficit. The new government also changed the projections for this year. The deficit figure of 3.3% was actual, and it accounted for the €66 million of tax revenue which Enemalta still owed the government.
Prof Scicluna said he was shocked by suggestions by the former finance minister on what could have been done for the deficit not to exceed the EU deficit threshold of 3%. The figures, he said, were produced by the same people who had worked for Mr Fenech. The new government, however, was committed to reducing the deficit to 2.7 per cent by the end of this year, and it was confident it would do so while achieving economic growth.
Dr Muscat referred to the EU's report on public finances, issued this morning. He noted that the EU had cautioned about the debt by public corporations guaranteed by the state. This, he said, was not a problem which would disappear overnight. True, much of Malta's debt was local, but the government was determined to slow down and stop its growth.
It was heartening that the European Commission had confirmed the strength of Malta's banking system, belying those in the foreign media who were trying to imply otherwise.
The commission had noted that the core domestic banks were not exposed to the volatility of the international markets and the international banks in Malta were profitable and well capitalised.
This confirmed the analysis of the government and the opposition and it was a comfort for the country as a whole, Dr Muscat said.
The 43-minute litany of financial allocations was then read out by Deputy Speaker Censu Galea, with each allocation being approved unanimously without division