It was Edward Scicluna’s birthday yesterday and the minister celebrated it with his latest Budget Speech. However, he did not have many presents to give.

Seriously now, the Budget aims to continue this government’s plans to not just manage the economy but also to promote further growth.

As was announced well before yesterday, the Budget fundamentally aims to increase the number of people contributing to the economy following on what was done in previous years. The number of registered unemployed has decreased to near the least in the EU and the number of gainfully employed, though still at a relative low rate, has increased.

The growth thus attained has decreased the deficit to well within the Maastricht criteria, although it has not yet contributed to a corresponding reduction of the public debt.

Some of the measures announced follow on what was announced in previous years.

Thus the reduction of the Income Tax top rate to 25% is a measure that was announced three years ago by the previous government and followed up by the present one, although this year’s sees a tweak.

The main roadworks that were mentioned – the Kappara Junction and the Paola Junction ones – have been long planned and have had to wait for the conclusion, near now, of the Coast Road upgrade. The government has added 30% to its road maintenance bill.

The government also announced a continuation and improvement of alternative energy schemes with communal solar panels.

The car scrappage schemes have been widened and extended to incentivize electric cars, hybrid ones and motorini.

Some measures correct previous ones that did not work all that well.

For instance the 50c per night eco contribution for tourists (capped at €5 per visit) had been tentatively introduced by the PN government in 2010 but then withdrawn. It is not yet clear whether this will be charged too to Maltese who spend weekends in hotels or in Gozo and, in the case of non-hotel accommodation, who will collect the tax.

The previous government had set up the eco-contribution scheme but this was not well thought out and never liked by the commercial sector which was also up in arms at the way people coming from Sicily blatantly escaped paying the eco-tax. The present government is changing this through excise duties which cover also imports from Sicily. This change may however increase the price of soft drinks.

In two areas the government has come up with innovations.

The pilot project that will enable elderly persons to remain at home and get half the minimum wage of a carer may increase the amount of Filipinos in Malta but seems to make sense, at least in cutting down the government’s spend of €18,000 per year on a patient at a government home to just €5,000.

The government has also responded to suggestions to tax derelict property by studying what to do with commercial derelict property such as showrooms etc.

To this one must add tweakings in other measures regarding property such as the continuation of the first time buyers scheme, the reduction of taxes on Urban Conservation Areas residences upgrading, the sale of inherited property.

This is the second year of the contribution asked of employers who do not employ people with disabilities (up from €800 this year to €1600 next year and to go up to €2,700 the year after that).

Child care centres will be set up in Zebbug, St Julian’s and Floriana.

The government has studied closely the recommendations of the Pension Study Group and many of these recommendations see their first implementation in this Budget.

One of the biggest capital projects announced by the Budget is the €65 million relocation of ITS from St Julian’s (in the hub of the industry) to SmartCity. This is still years away but we warn that unless the access to this area is improved (as had been promised by the previous government but never implemented) there will be huge traffic problems to face.

It is heartening to hear that the feasibility study on a link to Gozo has been concluded in favour of a tunnel and that a serious study is underway on the possibility of an airlink but things must get beyond the study phase to decision phase some time soon.

Each one of us undoubtedly has his or her pet capital investment project but one must understand the government wants to keep the deficit going down and growth continuing. On the other hand the many reforms that must take place are structural and require huge investment. Consider, for instance, the present traffic problems: one doubts is spending just €3 million more for road maintenance will be enough. The government then has a peculiar take on traffic: it is using it as a revenue earner, hence the increase in excise duty on petrol and the small decrease in petrol and diesel prices at a time when the price of oil is far below what it was four years ago.

Fundamentally, this Budget tackles the people at risk of poverty and aims to help them get out to work and off social relief. The economy has avoided over-heating through the entry of so many foreigners into the work force. Will this Budget be enough to wean the segment of our country off social assistance and into the work force?