'Pensioners are only getting €5 weekly, and not €10': Alex Borg reacts to budget

Alex Borg on Monday slammed the government for a "shameful" €5 cost-of-living increase for the elderly in its budget for 2026.

Last week, Finance Minister Clyde Caruana said pensions were set to increase by €10 weekly, in a budget measure that will benefit 100,000 pensioners.

But in his reaction to the government's financial plans for 2026, the PN leader said the budget did not realistically support pensioners. 

"The finance minister wanted us to believe that pensioners are being given a weekly €10. But the minister failed to mention that half of this €10 is the taxed €4.66 COLA.

"This is the reality of our elderly. They gave us this country, made us who we are. Worked hard, built families and remain pillars of our society. And what did the government give them in the best budget in the country's history? €5 a week. This is shameful."

While food and medicine prices continued to increase, the elderly were given scraps, he said. 

"Don't pensioners deserve more than the equivalent of half a loaf of Maltese bread a day?"

The leader of the Opposition reiterated that while €4.66 did not truly reflect the increased cost of living, the COLA should not be taxed. 

He insisted that the government should ensure increased purchasing power, and jobs that allowed workers to spend quality time with their families. 

The current economic model - which he said was based on unsustainable growth of the population - only incentivised people to work harder.

From time to time, he questioned why his colleagues on the opposite side of the House were laughing at the PN's proposals.

"Laugh, because you're used to living in luxury," he quipped at one point. 

"This is an unjust economy. It's unjust because it erodes family time, increases traffic burden, weakens security, destroys the natural and social environment and increases pressure on mental wellbeing. 

"It is an unjust economy as the government discriminates between workers who do the same job. There are workers who work within the civil service who are paid more than those contracted by a private contractor. 

"It is an unjust economy because while persons of trust are paid thousands of euros, Maltese workers have to work overtime or do a part-time job to live a decent life. 

"While this government is setting COLA at €4.66, those within the club of ministers are getting a €1,700 payrise, or €33 a week. Are the ministers suffering an increased cost of living seven times more than the people out there?"

Borg acknowledged that parliamentarians should get a decent wage; however, social justice required prioritising the vulnerable, he said. 

Throughout his speech, Borg reiterated that a PN government would ensure people would "work to live, and not live to work".

'Children are not a financial transaction'

The Opposition leader lamented that the budget, despite being "the best in history", had not provided any tax cuts for the elderly, single people, childless families or those with children aged over 18 who did not continue with tertiary education, and businesspeople.

He noted that previous PN governments had provided tax cuts during an unprecedented financial crisis and when the local population was much smaller. 

A PN government, he said, had even slashed corporate tax from 65% to 35%.

He criticised the government for basing its economic model on an increased population.

"Do you know what you forgot prime minister? Bearing children is not a national obligation or a financial transaction. Parents want to spend time with their children and want a place where they can bring them up. 

"Those who wish to have children want a natural environment where they can bring up their children."

Last week, Caruana announced that parents will receive a bumper tax cut starting from next year, in a major drive to address Malta’s fertility woes. The measure will see tax bands widened progressively over a three-year period between 2026 and 2028.

Meanwhile, the one-off bonus for the birth or adoption of a child will now rise to €1,000 for the first child, €1,500 for the second, and a significant €2,000 for the third child and every subsequent child.

'Undelivered promises'

On Monday, Borg also listed a series of promises by a PL government which he said had still not been delivered, including a carnival village, a racetrack, pontoons for fishermen, a mental health hospital, LSEs at childcare centres and an ITS campus in Smart City, among others.

The budget, he added, did not tackle traffic, the hospital waiting lists and a vision for mass transport.

In turn, he presented 50 proposals that he said a PN government would see through, including a Child Trust Fund, set up by the government, that would allocate €5,000 to every child upon their birth.

'Chaotic Gozo'

Borg also referred to Gozo, which he said was no longer a calm, unique place. It was nowadays a chaotic island in a derelict state as a result of the government's lack of vision, he said.

Borg said traffic clogged the streets leading to the capital, a new hospital had not yet been built, people with mobility issues had to deal with the lack of accessibility aboard the MV Nicolaos, while parents of children with special needs often had to resort to private treatment because of long waiting lists. 

Meanwhile, both the Marsalforn and Xlendi master plans seem to have been abandoned, he said.