This blog never had aspirations to being a number cruncher and we always begin our budget-time assessments with a caveat the size of Manwel Mallia’s mattress. While I do not feel that the minutae of budget balancing is within my sphere of expertise (nowadays everyone seems to be an “expert” in something “f’hiex jifhem?”) I can and will assess the noise created by and around it.
It does not take much to see that as a general line the “state of the economy” bit of the affair tells us one simple message: that the economy was being safely marshalled by the previous PN government and that the PL financial gurus simply had to hold tight to the rudder and control an already steady ship. How does an ignoramus like me notice that? Simples really – there are no groundbreaking measures that would signify a sudden change in direction – little wonder that Muscat expects the Commission to approve his latest milestone in the mysterious roadmap.
When it does boil down to the nitty-gritty Muscat seems to be making much of the fact that he is putting his money where his mouth is. True, we are surprised in the sense that this is the first time that Labour seems to be actually acting in the manner it had promised before the election – and this with regard to one very particular item on the budget list i.e. the cost of water and electricity. Surprised we are because given Labour’s haphazard approach to accountability, environmental transparency, meritocracy etc we should not be blamed had we expected even the black and white promises on the utilities bill to be thrown out of the window.
In his intervention with the press, Simon Busuttil tried (rather vaguely in my opinion – could have been clearer) to explain how the money saved on electricity and water will be repaid threefold via the newly introduced or increased indirect taxes. That’s one for the number crunchers to confirm/contradict. If it is so (and quite frankly it must be so since the money must come from somewhere) then Labour’s deceptive basket of “cutting the utilities bill” will turn into a time bomb ready to explode when the voters realise that their pennies saved have actually transformed in pounds pinched.
What did jar insofar as the opposition reaction was concerned is the assertion that this budget contains no job-producing measures. Given the noise coming from other social partners this particular reaction might turn out to look like one of those that is simply “negative for the sake of being negative”. The MEA (Employers), MDA (Developers), MHRA (hotels & restaurants), GWU (you know), and the Chamber of Commerce and Enterprise all seem to have hooked on to more positive aspects of certain measures in the budget including job-creation. Bar the angry nurses (MUMN), the FORUM seems to have had positive words for most of the budget plan, leaving Simon Busuttil and the echoes in a few blogs/columns sounding like lone negative voices.
I am (painfully) aware that the “negative” mantra is something close to Joseph Muscat and believe you me I am not using it in the same sense. Labour’s little measures (COLA, petrol prices, cigarettes, educational footballers) might have served as a little decoration around the most awaited measure of cheaper utility bills (let’s face it, it was the only thing most people were looking at this time round). Some other measures such as the incentives for first time house buyers will be warmly welcomed (for a better highlight of positives and negatives check out Mark Anthony Sammut’s early assessment).
Should Busuttil have focused so strongly on job-creation? I believe that the biggest flaw in Labour’s budget hype is the very fact that it is much ado about nothing. The bigger emphasis should remain on the citizenship for sale system that stinks from top to bottom. other than that Busuttil should have thanked Muscat for confirming that there was absolutely nothing wrong with the direction in which the PN was heading finance-wise and allowed this first Labour budget to shine by reflecting the light shone earlier in the year by its predecessors.
As for the cut in utility bills. While Muscat played his little fiddle in parliament last night, East Libya (the oil rich East Libya) declared an autonomous government and gunshots were being fired in Tripoli. Meanwhile we have obscure deals built on Chinese whispers and a not too tenuous link between the latter and our new citizenship scheme.
When it comes to surprises Muscat cannot be more of a jester than this.
