There has been widespread support for the Manx government's 2009 budget, unveiled yesterday by Treasury Minister Allan Bell.

Although there is no change for income tax, those on Jobseeker’s Allowance won’t have to pay tax on it, and there is a small rise in Personal Allowance Credits.

Mr Bell also announced a ?128 million spending package on projects which will give a lift to the construction industry.

He says he understands people may be disappointed after the package didn’t extend income tax personal allowances.

But the break-even budget he announced was so tight, any rise in allowances could have put the government in the red.

During the debate, Mr Bell told Tynwald at the end of the year he expected a ?200,000 surplus - a massive reduction on recent years.

And that could have been wiped out completely if he had been been more generous with income tax.

Mr Bell said:

"If we had increased personal allowances this year, it probably would have had to have been increased by one per cent, because it's only increased by inflation.

"That would have led to a total cost of ?600,000 for one per cent.

"That ?600,000 (we have saved) is going to enable us to provide a balanced budget this year. If it hadn't been for that we would have been in deficit."