Given the current financial situation, the Budget managed to strike a balance between the needs and the realities of the country, according to the Malta Chamber of Commerce and Industry.
"We recognise the situation within which the Budget was formulated and the government's commitment to stimulate investment, support companies of all sizes and increase jobs," the chamber's director general, Kevin Borg, said.
"Within this difficult economic scenario this was a courageous Budget that tried to strike a balance between the country's needs and realities. Our needs are employment and investment without which the economy cannot thrive," he said in his initial reaction to the Budget.
The chamber was, however, disappointed that the social partners could not agree on a set of labour flexibility and other measures that could be introduced to mitigate the effect of the cost-of-living adjustment on employers' labour costs.
The Budget speech lacked measures necessary to justify the salary increase from a performance and productivity point of view.
It criticised the uncertainty that still surrounded the utility tariffs to be introduced on January 1 2010 following the verification and approval of the Malta Resources Authority.
"This may unnecessarily dampen local economic momentum. In this sense, it would have been better had the matter been clarified before next January," the chamber said.
In a statement the chamber commended the support to small and medium enterprises and welcomed the increased budget allocated to the Malta Enterprise with which it worked very closely.
The chamber, that will be further analysing the impact of the Budget, recognised the drive towards enhanced efficiency in tax collection with the announced consolidation of the Inland Revenue, Value Added Tax and Customs Department.
"This measure should create enforcement synergies and permit payment set-offs. The chamber augurs that this integration is completed within reasonable time to ensure a seamless transition in terms of payments from the public to the private sector."
The increased budget towards the Employment Training Corporation would ensure a constant upgrade in the profile of its workers. The chamber supported the announcement of the new scheme for a compulsory education for unemployed persons aged between 16-20.