In the Budget speech last year, Finance Minister Tonio Fenech announced a range of incentives to create jobs and safeguard the environment.

He also launched a new Vehicle Registration Scheme which saw registration fees falling for small and medium sized cars and rising for the bigger ones.

There was also a price increase at the petrol pumps, with duties on petrol and diesel rising by 3c5 and 2c per litre respectively

The Budget included income tax cuts totalling €12 million, a €4 weekly wage increase to cover the cost of living, and a number of incentives for businesses aimed at encouraging employment and investment in energy saving measures and research.

The tax breaks given to women who returned to work after five years were extended, and there was also a new tax break of one year for all women who gave birth since 2007 and had returned to work, a saving of up to €1,600 each.

SMEs that invested a minimum of €10,000 were to be given a tax credit for two years in a move aimed at promoting business in the localities.

Incentives for energy saving

Measures to help the environment also included vouches for energy saving lamps, but a tax on traditional bulbs was announced in an effort to discourage their use. An energy performance certificate became a requirement for development permits.

Mr Fenech announced cash grants of up to two-thirds of the cost of the installation of domestic solar heaters for up to 4,500 households and assistance for the installation of photovoltaic units.

A discount of 15% was announced for those who bought bicycles.

Higher taxes on plastic bags, yacht and swimming pool licences

The eco-tax on plastic bags rose to 0.15c per bag and a duty of 0.1c per 80g was to be introduced on magazines, leaflets and other commercial literature having advertising content of more than 50% and distributed through the post, through the newspapers or for free by hand.

There were increases in yacht and swimming pool licences. Plans to privatise the yacht marinas was confirmed.

Cigarette prices rose by 0.20c per packet.

Increased spending on tourism, roads

The budget for 2009 featured a boost in the financial allocation for tourism for a total of €28m. However, Mr Fenech said, as from January 2010 there would be a new tax of 0.50c per night per tourist.

The tax free threshold to host families was raised to €3,500.

€29 million were directed towards the road-building programme and there was also more investment on school-building.

The budget also featured plans for the creation of a Bio Technology Park at San Gwann, a new law to regulate SMEs and an infrastructure programme on Information technology which was to see fibre cables extended to households.

In other measures, the unemployed who had been registering for work for more than five years were to be required to work a minimum of 30 hours per week in the community and be paid 75% of the minimum wage.

Drinking age to be raised, duties reviewed

Duties charged on the importation of alcoholic drinks were adjusted to stop the price disparity with Sicily which hadseen some people prefer to go to Sicily to stock up. As a result, most prices dropped, although some rose.

The minimum age for drinking was raised from 16 to 17.

Balanced budget target postponed

The review of the economy showed that the deficit has risen to €200 million (3.5% of GDP) from a projection of €68 million (1.19% of GDP). The projection for the end of 2009 was a deficit of €98.8m, which would be 1.85% of GDP. Mr Fenech said revenue targets had been reached but expenditure was higher than projected owing to increase outlay on the dockyard and Enemalta. Plans for a balanced budget were postponed by a year to 2011.

Economic growth reached 3% in 2008 and was expected to slow to 2% this year. Inflation was expected to be stable.

The budget included provision for the building of two child care centres, night shelters for the elderly and the appointment of facilitators in private schools. It also provided the first funds for an extension of the Mcast complex and for a study into the reintroduction of the tram.

Of course, all that was last year.