A week ago today Prime Minister Lawrence Gonzi, in his capacity as Finance Minister, announced the budget for 2007. The following day, the leader of this newspaper carried the headline No surprises. And yes, the editor was right, as the budget, although still very relevant, no longer carries that aura of suspense as it did in the past. Public consultations had been going on all through summer, giving the public the opportunity to air its views and expectations.

Meanwhile, the Labour Party tried to build up the people’s expectations about fiscal relief as they thought disappointment awaited. But the people were not disappointed as the government announced a great reduction in income tax. In fact it means that the government will be collecting Lm12 million less from the people – Lm12 million that are going to remain in the people’s pockets for them to spend as they please. Last year, the people were asked to share some of the responsibility in order for the country to reach its economic objectives. These objectives have been reached. The deficit is at its minimum for the first time in years and the economy has grown by 2.6 per cent. Therefore, this year we are reaping the fruit of that sacrifice. People are going to have more money to spend, thus contributing more towards the economy.

In fact, as a woman, I cannot but express my satisfaction for the incentives introduced in this year’s budget to encourage more women to enter the labour market. Although in the pre-budget document the government showed its commitment towards encouraging more women to return to work, the incentives introduced offer opportunities that should not be missed by those who truly want to work.

Among the incentives introduced, there is the decrease in N.I. contributions for those who work part time. Statistics show that the majority of women opt for part-time work as this leaves them with more time for family responsibilities. Until now, part-timers were paying a flat rate of Lm5.79 per week. As from 1 January, a part-timer can opt to pay 10 per cent of his/her income as national contribution and not necessarily the minimum, which can be more than 10 per cent. In turn, part-timers will receive pro rata benefits.

The tax bands have also been changed in such a way that a couple, both working full-time, will be saving quite a few hundreds between the two. The tax holiday for women who return to work, introduced a couple of years ago, has also been reconfirmed. A woman who returns to work after an absence of five years due to family responsibility will save up to Lm700 tax in the first year.

The government is also recognising the fact that more women are depending on child care centres. Parents who send their children to a registered child care centre can now declare up to Lm400 expenditure from their income towards child care for tax purposes. Also, child care services paid for by the employer will no longer be considered as a fringe benefit for the parents, thus it will now be a tax-free benefit while the employer can reduce it from the company’s turnover.

Also from 1 January, women working in their family business will be considered as regular employees, thus benefiting from all the rights like the rest of the employees.

And, finally, one measure that shows that this government strongly believes in showing solidarity to those who really need it, is the change in the widow’s pension. Widows can now continue working without losing their pension. This goes to show that the government is listening to those who are suffering because of circumstances beyond their control.

The list is endless. These are some of the measures that women are going to benefit from directly. Women will also be gaining from the government’s investment in economy, the environment and education.

With this budget, the Nationalist Party in government has shown once again that it is the party for women. The PN government has presented us women with these opportunities on a silver plate. Now it is up to us to take full advantage of what’s being offered.

Michelle Mallia is president of the Nationalist Party Women’s Movement