Widespread scepticism on whether Budget will meet objectives

Although the government tried to prepare public opinion, ahead of the Budget, that the economic situation is not rosy and that difficult decisions need to be taken now to avoid stiffer decisions in future, the Maltese in general do not have faith in the objectives put forward in next year's budget.

These are the main thrust of the findings of an opinion study on the 2005 Budget that Professor Mario Vassallo conducted on behalf of The Sunday Times on the two days immediately following Budget Day.

In fact, only 22% think that the measures launched in the Budget will increase work opportunities, a major objective in Government's view. On the contrary, as many as 38.7% believe that the measures will actually decrease work opportunities, while the remaining 39.3% could not offer a firm opinion.

Asked for their overall appraisal of the budget as an instrument of policy that matches Malta's current needs, only a relative majority (44.7%) actually believe that this kind of budget is indeed necessary; 36.3%, however, think the exact opposite; and the remaining 19% did not commit themselves.

The new fiscal measures were considered unjustified by the majority. As many as 54.3% of the adult population do not consider the electricity consumption surcharge justified; 40.3% consider it to be justified; and the remaining 5.3% did not answer.

Some 75% consider unfair and discriminatory against them the fact that only those who start their journey from Malta's airport, rather than all persons using its services, are to pay the additional departure tax. A very large number consider this new tax to be discriminatory and reject its justification.

In the same vein the majority (61.7%) are not convinced that bus owners deserve a 5c increase in bus fares. Only 29% considered it to be justified. Young commuters, in particular (68.8% of those aged 18-25), are very dissatisfied with the increase.

Neither are the Maltese convinced that the curtailment of public holidays will have the desired effect: only 41% believe that the economy would do better; 47.7% are of a contrary opinion; and the remaining 11.3% gave no opinion.

In contrast, a large majority is fully supportive of the measures introduced by the government to curtail abuses among persons registering for work. As many as 74.7% unhesitatingly stated that these measures were justified.

Similarly, each of the set of proposals aimed to promote sustainable development through the use of alternative energy sources, the expansion of education, the benefits for creators of new jobs and the additional help to parents who need facilitators for their children attending special schools received extensive support.

Budget time is always a difficult time for the party in government, and this time it is no exception. This study suggests that at present neither of the major political parties is offering viable options to the electorate.

Asked to comment on the findings, Professor Vassallo said: "The public's reaction following the budget is typical of reactions following austerity budgets which governments in many countries have to face. This time round, however, loads of promises are being attached to the measures taken, and it is essential that the government deliver, since its credibility is at stake.

"Significantly, the most economically active age group in the population, i.e. persons aged 36-50, are the most critical component of the population, together with skilled labour, grouped in the C1 socio-economic group.

'The Maltese are clearly sceptical of politicians' promises, especially when they realise that, come what may, measures are bound to affect negatively the lowliest among them most of all. The trend, detected in other studies, that the Maltese no longer blindly follow their political leaders, is confirmed here. It is up to the politicians to take stock, and read the signs of the times to their advantage if they want to restore and maintain their credibility."