It is hardly the time of the year for anyone to go into a pre-Budget document. But this is not to say that the pull of the sea, or of an overseas holiday, robs the document the importance it deserves. On the contrary, its publication, far ahead of the actual presentation of the financial estimates – as it is now customary – is an admirable move.
It gives the constituted bodies, and the people, time to go through the government’s proposals with a fine tooth comb to see how they fit into their own scheme of things and how, generally speaking, they can help bring about an improvement, not only in the economy but, equally important, in matters that directly help improve the standard and quality of life of the people. This is, after all, the driving force of any budget, of any government programme. However, much the details of the government’s thinking, or proposals, over particular issues may change, or be fine-tuned, between the publication date of the document and the final approval of the estimates in Parliament, the ultimate goal remains the same.
A first glance at the document immediately shows that it is somewhat more interesting than the last one, which was far too academic in nature to draw any enthusiastic response. Quite correctly, the government is aiming at concentrating on fiscal consolidation. With high deficits in government finances and national debts giving so many serious headaches to so many members of the European Union, it would have been sheer folly on the government’s part to relax any of its efforts in the management of its finances.
On this score at least, the Finance Minister, Tonio Fenech, had reason to feel satisfied at the fact that, contrary to the situation in other countries, the government here had no reason to resort to raising new taxes or cutting benefits. Of course, Malta is not living in isolation and it could hardly escape the impact of the financial storm that wrought havoc in the first place but, at least, the impact has not been as severe as that in so many other, much stronger, countries. Even so, the exercise remains directed at cutting the deficit to below the three per cent threshold as required by EU rules. According to the document, the government is aiming at reducing the deficit next year by one percentage point of the gross domestic product, to 2.9 per cent.
But other than this, and the plans to strengthen the monitoring of spending in the public service, the government is taking a broader view through new initiatives aimed at improving the quality of life. Government critics could well find a plan to help dementia sufferers grist to their mill with, for instance, jibes centring on the government’s forgetfulness about election promises. But to the many that have relatives suffering from dementia, any help to ease, or improve, their situation could make all the difference.
Strengthening the funding of the health sector is essential, more so when the service has expanded so much over the years and when, even in the next Budget, the government aims at continuing to improve the range of services available. Very important, too, for example, is the plan to launch more cancer screening programmes. Gozo receives its fair share of attention as well. But, of course, the document requires more than a first reading to assess its validity.