The Budget was considered "good", but for a non-recession year, according to the Malta Employers' Association.
It contained "wide-ranging and innovative" measures for 2010, but the question remained whether they would provide sufficient stimulus to pull the economy out of the recession, MEA director general Joe Farrugia said.
He claimed it lacked the strength of the stimuli, but, having said that, it rightly focused on investment and the economy, with a set of "very positive measures that targeted small and medium-sized enterprises, including a fund to assist companies in difficulty".
At €2.5 million, however, Mr Farrugia hastened to add that he doubted whether this would be sufficient for ailing businesses.
The thrust of the Budget was to subsidise the utility rates, which he did not feel should be a priority. "Helping industry is more important at this stage. I would have shifted more in favour of this."
Mr Farrugia listed positive measures, particularly regarding research and development, including the fund to set up a revamped ICT department at the university and another for a biotechnology park.
These measures would generate employment opportunities, he said, adding that the Budget also addressed the important issue of youth unemployment and contained actions to encourage young people to undertake further education.
"The government has been cautious to contain its expenditure and its targets for next year are a budget deficit of less than four per cent. One could argue that, in times of recession, it could be better to have stronger expenditure even at the expense of a higher deficit, provided it is reversible," he said, adding that most of the government expenditure was tied up in recurrent expenditure, leaving it little room to manoeuvre.
Speaking about the intention to reduce public sector employment through natural wastage, Mr Farrugia said around 1,600 people would retire from the public sector next year, meaning the government could control its wage bill, leaving more funds to spend on assistance to industry.
He insisted on the importance of communicating the schemes well to avoid a low take-up because people did not understand the benefits on offer.
"I only hope the debate will not degenerate into the utility rates. The national budget is the major tool for fiscal policy, and as such, should be seen as a set of strategies that should enable the economy to grow. It is not a wish list, looking only at what the government can give."