Saved by the Grinch?

This week we woke up to the unwelcome news that the government deficit for the first 11 months of 2012 had increased by just under €64 million compared to the same period the previous year. Bad news indeed for all those who had hoped that the deficit was in fact under control and shrinking.

According to reports published in the MaltaToday portal, the widening in the government deficit was the result of an increase in total expenditure of €195.8 million.

Unfortunately the increase in revenue of €132 million was not sufficient to offset the additional expenses, resulting in a further deficit of €63.8 million. The total deficit for the period was €342 million.

Judging by comments made by the Minister of Finance, it appears that Franco Debono has possibly done the government a favour.

By shooting down the budget, he has ensured that government expenditure will decrease over the first quarter of 2013, with various initiatives - such as the increase in children's allowance - not taking place, and government departments being very careful with their cash and not embarking on any new initiatives.

This situation, the minister informs us, will result in government expenditure shrinking and the deficit once again coming on track.

I cannot help but question this state of affairs. If the deficit is increasing at such an alarming rate (because an increase of 23% is quite alarming, do you not agree?) why were we presented with a budget that was bursting at the seams with freebies and Christmas cheer?

If revenue is not growing at the same rate as expenditure, why did the minister suggest a reduction in income tax rates for those at the top end of the earning scale? I understand that the underlying assumption is that businesses will be paying more corporate tax due to an projected increase in profits, but how realistic is this given the fact that everyone is feeling the pinch and that the great majority of us are being very careful with our hard-earned euros? The budget did not include mention of any major upcoming investments by the government, which is another indicator that things will be slowing down in 2013 and that an upsurge in corporate profits is unlikely. My feeling is that we have not hit the bottom yet, and that things are going to get worse before they get any better.

Is one to think that the people who put together the generous proposals the country was regaled with last month were banking on Franco Debono to save the day, trusting him to take on the role of the Grinch who stole Christmas?

Helping the homeless

This year the Maltese people have been exceedingly generous, with record sums being collected during L-Istrina and the Dar tal-Providenza open day. These are very worthy initiatives indeed... however, while we are still in the festive spirit I would like to take the opportunity to bring to your attention another NGO that is sorely in need of help.

The YMCA homeless shelter, Dar Niki Cassar, is home to over 30 persons, a large number of whom are kids. Their food supplies are running low at the moment so they have issued a call for donations of food, which can be dropped off at any Melita Cable outlet.

A couple of years ago I visited YMCA and I was impressed by the work and commitment of the team who manage this shelter. They care for people who have truly hit rock bottom, losing everything, including a roof over their head. We tend to be complacent about homelessness in Malta, thinking that it is something that only happens "abroad" and not on this little island of ours.

A visit to Dar Niki Cassar brings you face to face with the harsh reality that we do indeed have people who are homeless and that if it were not for the YMCA these people would end up sleeping on the street at night.

These people really need our help. I urge you all to rummage through your food cupboard and fill a bag with some tins and packets of food - it's a small gesture that will go a long way at Dar Niki Cassar.