More good news on the state's economic front came this weekend through a welcome initiative from state lawmakers: The two-day sales tax holiday of the past weekend, it seems, was another great success.

Early estimates suggest that the weekend's sales figures will likely reach the $500 million mark, a number typically unseen until the height of the Christmas rush and certainly unheard of in the doldrums of August.

State Senator Jack Hart, who championed the legislative push for the sales holiday, contends that the two-day holiday is a reward for the state's tax-weary residents. "During the worst part of the recession, Massachusetts consumers continued spending," Hart stated this week in a press release. "This tax cut allows lawmakers to say thank you to consumers for their continued faith in the Massachusetts economy."

The tax holiday is also a boon for retailers, who can usually count on the ides of August to be among the slowest of the calendar year. Indeed, last year's first-ever tax holiday- a one-day affair in 2004- prompted a 500 percent rise in receipts for retailers.

And, although, the state coffers take a slight hit by passing up on the five percent take on items under $2,500- most agree that the ends more than justify the means. Meals, gasoline and big-ticket items aren't part of the deal- so while consumers hit the highways and city sidewalks to pick up computers, I-pods or a new pair of sneakers- they gave the economy a goose in other ways. Plus, the heavy shopping traffic meant more jobs, more hours and heavier paychecks for thousands of workers.

Senator Hart and other state leaders who pushed for and promoted the weekend have the right idea. Tax receipts for the last fiscal year ('05) were higher than expected, exceeding the previous year's take by more than $1.1 billion, or 6.9 percent, according to the state's Department of Revenue. Clearly, there is now some much-needed breathing room to give residents and retailers this kind of break.

The cautious fiscal discipline of the Tom Finneran era of state government should remain the touchstone for economic policy-making on Beacon Hill. Rainy day funds should be safeguarded to protect against future recessions and potential disasters. Tax holiday fit well into that governing philosophy, without lurching towards a large, ill-advised tax rollback or state spending spree that could jeopardize the good progress that's been made.