In my student days I was very close to taking up philosophy at the University but I opted for Maltese. It must have been due to the nationalistic fervour of the time. Philosophy still fascinates me. I believe more students should be encouraged to take it up as part of their post-secondary studies. It was intriguing to read Fr Peter's perspective on Life After Death (The Sunday Times, November 15). Heaven, he told us, is the ability to look at our existence as a laughing matter.
Fr Peter added that we laugh at mistakes; provided that the consequences are not "disastrous". Nourishing food for thought. A welcome break from all the hullabaloo around Budget 2010. If only we learn to laugh more: at ourselves, at life... at the Budget. Then, possibly, Malta will not remain a "bi-nation". We could rediscover ourselves as the true descendants of Atlantis.
All this sounds good but for those living in dire straits, who hardly make ends meet, the Budget still matters. Budget 2010 was conceived as an elephant but was born a mouse. So much for all the talk about COLA, unemployment and single mothers.
Budget 2010 was another missed opportunity. We are no wiser after the whole process. Year after year we keep getting a "stale" Economic Survey, which has little strategic analysis. Surely, this country can do much better than this. Take inflation. Last year, Malta had the highest rate in the eurozone. Why? Are we the only country dependent on oil and having to cope with global recession? How come Cyprus has an inflation rate one-third ours? Is no serious economic analysis being prepared or is it being kept hidden from the public?
Instead, we keep getting colourful platitudes. As if tomorrow is Election Day.
Above all, Budget 2010 had to be a credible, confidence-building exercise that sent a clear and strong message about the resilience of our economy and our government's firm determination to get the economy out of the recession. Has this been achieved? Is anyone convinced about the seriousness of the government to cut abuse and promote fiscal morality?
I do not know. Somehow it does not seem right that the government offers another amnesty, this time to collect the €600 million supposedly due in tax arrears. Is it morally correct for the government to impose higher Mepa fees when this quango is still being restructured? Is it morally correct for the government to promise a subsidy on energy bills before presumably knowing what the rates will be?
In any case, why did the government opt for a subsidy to households and not for lower prices? Does the government not realise that a lower price would have had a lower impact on inflation in 2010? Perhaps, despite all the talk about controlling inflation, our government is more eager to send a cheque to 97 per cent of Maltese households. Will we still get the subsidy if the "real" international price of oil falls?
In November 2008, the world economy had been in recession for more than 10 months. Our government was short-sighted enough to "plan" on the basis that our economy will grow by 2.2 per cent. Instead, our economy in the first six months of 2009 shrunk by 2.6 per cent. A variance of 4.8 per cent of GDP inevitably sent government finances haywire. This year, the government is hoping that the recovery of the global economy will suffice to turn around the local economy, resulting in a 1.1 per cent growth rate. (This is marginally higher than the 0.7 per cent growth projected for the eurozone.)
While it is true that there have been a few green sprouts and some economists believe that the global recession has bottomed out, the world economy is not yet out of the woods. Moreover, our government continues to ignore the fact that many of our economic ills are primarily the result of its own misguided policies and the quality of its strategic planning.
Lacking vision and direction, the government keeps throwing money at our manufacturing, tourism and agriculture. We are now told that Malta Enterprise is being restructured. This is its fourth restructuring exercise in the last six years.
A lot will also depend on the recovery of our construction sector. We boast about all the investments that are being made in training and then, for lack of proper management and planning, we have let go to waste the unique pool of technical skills that existed at our shipyards. Now, the future of another vital industry in our economic set-up is in the hands of some potential investors. This country cannot live by financial services and i-gaming alone.
An important measure announced in Budget 2010, which has gone almost unnoticed, is the government's commitment to amend the Financial Administration and Audit Act. The government will also be buying a new accounting system. Changing to an accruals based financial system is critical for the government's accounts to be transparent and to enhance accountability.
Future budgets will, hopefully, focus less on how much money is being spent and more on the expected outcomes.
Our country desperately needs a credible strategic plan and a strong vision, as was the EU membership one, to which people can relate. Then, we could all be laughing a bit more.
fms18@onvol.net