The Union Haddiema Maghqudin said this was a prudent and responsible budget, and it was satisfied that some of the proposals it had made had been included in the budget measures.

The budget consolidated the financial situation of the country, so much so, that the deficit would be cut by another Lm20 million, with the deficit ratio to the gross domestic product being brought down to 1.2 per cent. EU funds were making a positive impact.

The budget encouraged work and investments. The scheme to train persons who had been registering for work for some years was a good measure which would help those concerned and cut abuses. The UHM said it had made this proposal more than three years ago.

The Lm102 million education vote was a strong vote and the Lm1.50 cost of living increase would help reduce the impact of price rises. It was satisfying to the UHM that pensioners would receive the full increase.

The continuing reform in income tax was positive and was on the lines the UHM was calling for. The review of children’s allowances would help families with children, and it was fair that everyone would get the minimum compensation of Lm107 for each child.

The UHM welcomed help for purchase of the first home, and the measures allowing pensioners to take up work with no limit on earnings. There were other measures which seemed minor, but which would help those receiving aid, such as the additional week’s maternity leave, tax credit on children going to private kindergartens, and others.

The UHM said its general council would be discussing the Budget 2008 measures in detail tomorrow.