Any budget discussion in Malta is invariably prefaced with an opinion on the allowance the government decrees across the board to make up for the rise in the cost of living. Once this is established, general public interest then moves on to whether or not the government plans to raise new taxes or to give new benefits. This is not very different to what happens in other countries, though these may not have the cost-of-living wage adjustment as one of the annual arguments underlying their budget debates as Malta has had for quite a number of years now. However, there is more to the budget debate than the cost-of-living wage allowance that ought to generate interest, one reason why the government publishes, in advance of the presentation of the estimates, its pre-budget document.

Besides the usual statistical information, very useful for analyses of the economic situation generally, the document also gives an overview of the government's thinking. It comes as no surprise of course that the government is putting growth at the very top of its agenda because it is growth that fuels progress and helps bring about an improvement in the people's living standard, which is the goal of any government. The problem is how to generate new growth in times of an economic slowdown that has given so many headaches to countries throughout the world. Many at first thought that the trouble would bypass Malta, but such unrealistic hopes were short-lived as orders for goods dropped and tourism declined.

Even so, the country has not been hit as hard as some other countries, though it has a list of very stiff challenges that it has yet to meet, such as that of ensuring the sustainability of the country's social welfare system and health services. Strong leadership, courage and determination will be required to knock down barriers that will stand in the way of the work required to put these services on a sound financial basis. Government documents are usually crammed with political rhetoric, but in all the self-criticism people generally indulge in when discussing Malta's current economic situation and prospects, few may stop to take an objective overview which could help give a better perspective of the situation.

Finance Minister Tonio Fenech probably had this in mind when he said in his introduction to the pre-budget document that Malta is a successful country. There was no need for him to put an exclamation mark after the statement as, despite all the problems it faces, the island is indeed successful. In less than 60 years, the country has been able to build an economy from scratch. More could have been done had there been greater national cohesion and unity of purpose, but who would have thought up to only a few years ago that Malta would become a member of the European Union and even adopt its currency?

The major challenge now is not only to keep and sustain what the country has already managed to build up, but to work for greater economic growth. This is easier said than done in today's difficult economic environment, but with a greater determination to get on with the restructuring and reforms needed to be done in so many places, the island could become even more attractive for foreign direct investment. According to the latest surveys, industrial confidence is already picking up, a sign maybe that could help bring about greater confidence in tackling the many problems facing the country today.