The introduction of an additional cost of living (COLA) benefit for low-income people only served to confirm the longstanding view that the original COLA mechanism needs to be updated, the ADPD political party has said in a reaction to the budget.

The fact that 80,000 people will benefit from the new arrangement is also an admission by the finance minister that so many people are living in poverty, it added. 

While the policy of handouts Father Christmas-style has been reinforced, these individuals are not being assisted to improve their situation so that they no longer need to depend on social benefits, party leader Carmel Cacopardo said. 

"Although the current geopolitical realities are undisputable, one would have expected that the Budget would have included more measures to bring about permanent changes to improve the quality of life for all." 

Cacopardo also argued that the energy subsidies could have been an opportunity to encourage people and businesses to change their lifestyle and make it more sustainable.

"Instead of blanket subsidies it would have been better to focus help on those sectors which are heavily dependent on petrol and diesel, with help which should also aim to reduce this dependence."

"Basic, essential consumption of electricity should remain subsidised. Subsidies on consumption that is over and above essential use, and on fuels should be studied better," Cacopardo added. More expensive fuel could be a price signal to push towards having fewer cars on the roads, with people using cars when absolutely necessary, he said. This price signal should be coupled with more frequent public transport services and cleaner air.