A week after Finance Minister Clyde Caruana presented the 2026 Budget, Opposition Leader Alex Borg presented a Budget replica with 50 proposals in Parliament on Monday, while lambasting the government for failing to offer concrete solutions to Malta’s pressing social and economic challenges.

Borg opened his speech by outlining his vision for Malta and Gozo, saying that he made a clear promise to serve the whole of Malta and Gozo, to build a united country, better quality of life for families, a future for young generations, and an economy where workers work to live, not live to work.

Among the 50 proposals, Borg proposed removing the tax on cost-of-living increases while reducing taxes for everyone.

He proposed that no tax should be levied on the first €10,000 earned through part-time or overtime work.

To encourage investment, he advocated for increased tax incentives for employers.

Borg also proposed a pilot project and consultation with social partners on introducing a four-day work-week.

He proposed the need to incentivize private companies to offer teleworking, reduced hours, and flexible schedules, while expanding these practices within the public sector.

Furthermore, companies providing on-site childcare centres would receive support to help working parents.

Borg spoke of the importance of ending cheap labour practices established under the current government, and proposed the need to diversify the economy to ensure rising wages for workers.

He proposed ensuring equal pay for equal work for contract employees providing services to the government, as well as for civil servants to be financially supported to invest in second-pillar pensions, and pensions would be increased to meet modern needs, ensuring that elderly citizens can live comfortably.

Borg called for stronger national security through substantial investment in the police, and proposed reforms to the justice system to drastically reduce delays, including moving court documents to a paperless digital system.

Additionally, he proposed the construction of a new court in Gozo to better serve the population.

Borg proposed creating new economic niches such as MedTech, cybersecurity, and cryptography, focusing on value-added sectors rather than population-driven growth.

He proposed the need for strong investment in the aviation and maritime sectors as well as supporting the Creative Economy by providing financial assistance and opportunities to NGOs and local artists.

Attracting high-quality foreign direct investment was another key proposal to create meaningful job opportunities for young people, Borg said.

Borg advocated for transforming Malta’s tourism model to attract visitors with higher disposable incomes, and he proposed launching a Labour Market Study to ensure population dynamics remain sustainable.

On infrastructure, Borg called for the implementation of a mass transport system to alleviate road congestion, alongside AI systems to optimize traffic flow.

Investment in roads accommodating multiple modes of transport was also proposed, along with comprehensive studies to eliminate bottlenecks through targeted infrastructure projects. Borg also proposed incentives on car-pooling.

Another proposal is to ensure that all students in need have access to the Learning Support Environment (LSE).

Borg proposed constructing new schools across the country, modernizing science laboratories, and implementing strategies to encourage more students to pursue STEM fields, while vocational and trade schools would also be expanded.

Borg proposed building a new mental health hospital, regenerating Mount Carmel, St. Luke’s, and Karin Grech hospitals, and constructing a new hospital in Gozo.

Investments would also be increased in palliative care to ensure services reach everyone, Borg proposed.

He also suggested establishing a modern, dignified Child and Young People Services (CAYS) centre, focusing on neurodivergent children.

Borg also proposed reforms in hospital procurement processes to ensure medicines are available, reduce stockouts, and shorten surgery waiting lists.

The Opposition Leader proposed maintaining energy subsidies while investing heavily in renewable energy projects to reduce utility bills.

He proposed afforestation and ecological restoration programmes nationwide, including urban greening projects, as well as creating a water storage project to collect water generated in winter for use by farmers throughout the year.

He also proposed improvements in public cleaning and waste collection which would accompany increased transport frequency and service quality.

Borg proposed enhancing maritime connectivity through new vessels and improvements to ports, including the permanent establishment of a route between Mġarr and the Freeport to transport goods, which would also reduce traffic congestion in Malta.

For housing, he proposed identifying social housing projects to ensure everyone has a roof over their heads and providing significant assistance to first-time homebuyers.

Finally, Borg proposed creating a Child Trust Fund in which the government would deposit €5,000 for every new child, accumulating annually and redeemable when the child reaches a major milestone in life.

In his speech in Parliament, Borg criticised the Labour government’s 2026 Budget, which Prime Minister Robert Abela described as the “best budget in the country’s history.”

Borg told Parliament that if this was the best Budget in the country’s history, he imagined that there would have been solutions for overpopulation, traffic, health, cost of living, education, and the environment. 

“We did not hear one concrete solution for these realities that people face every day,” Borg said.

He accused the government of sustaining an economic model focused on population growth with no plan and no control, failing to create new economic sectors that could improve wages and living standards.

Borg spoke of sectors pioneered under previous PN governments, such as pharmaceutical, gaming, aviation, and maritime, and urged investment in ICT, MedTech, FinTech, and cybersecurity.

“Even the WEF says many industries are moving toward AI transformation. That is why Malta must invest in these sectors,” he said.

Borg drew attention to social inequalities exacerbated by the current model, pointing to poverty and food insecurity.

“We have around 100,000 people at risk of poverty, one in five of our citizens, and many relying on food banks and soup kitchens. This is another reality we have to work for, so we don’t leave anyone behind,” Borg said.

He criticised the government’s handling of cost-of-living measures, arguing the announced €4.66 COLA increase does not reflect the true rise in everyday expenses.

“We cannot as a government just cover basic things. People deserve more support to enjoy life with their families,” Borg said.

Borg also condemned what he described as inequities in pay, saying that government employees are paid one way, and workers with contractors are paid less.

He said that workers deserve decent pay and respect, and persons of trust earn tens of thousands while Maltese workers must rely on overtime and part-time work to make ends meet.

Borg accused the Budget of failing pensioners, noting the government offered only a €5 increase per week, saying that the supposed €10 per week increase for pensioners was actually just €5, on top of the €4.66 COLA, which is also taxable.

“How can you live a decent life with €5 extra per week? The budget ignored their real needs, from healthcare to access to services,” Borg said.

Borg spoke of housing unaffordability, saying that a third of the population cannot buy their own home.

He highlighted a drop in homeownership among families from 80% to 66% in 2024, with many taking on debt or resorting to renting.

“Families are falling behind, children’s futures are at stake, yet the budget offers no solutions,” he said.

He also criticised the government for raising the eco-contribution tax on tourists and failing to reduce corporate tax, warning that Malta risks losing competitiveness and foreign investment.

On healthcare, Borg described the emergency system as in “chaos,” citing cancelled operations, lack of essential medicines, and delayed projects such as Mater Dei’s new emergency department.

Mental health services, he said, remain underfunded despite several government promises of a new psychiatric facility built next to Mater Dei.

Borg said that education remains a low priority for the government because of the Budget’s limited initiatives. He called for more investment in learning support educators, modern labs, and vocational training to prepare students for life, not just exams.

Borg was critical of stalled infrastructure projects, including the Marsalforn masterplan, the Gozo hospital, and the Freeport upgrades.

He spoke of traffic congestion, lack of public mass transport vision, and delays in promised projects like the Metro system.

“Gozo deserves better. Residents shouldn’t have to travel to Malta for basic services,” he said.

He also expressed concern over the country’s national airline operations and the broader tourism sector, warning that increased taxes on tourists could reduce competitiveness.

Borg attacked the government’s environmental record, saying Project Green had largely resulted in “marketing stunts and greenwashing,” and warned that climate change measures were largely ignored in the Budget, and reiterated the PN’s commitment to enshrining environmental protection as a constitutional right, which the government voted against.

Concluding his speech, Borg said that the 50 proposals are only a few of the proposals the Nationalist party has worked on.

“This is the alternative government that thinks of families, their present and future. We will continue to be a voice for those who have no voice,” Borg said.

 “This is the moment for all Maltese and Gozitans. We have the ideas, the vision, and the commitment to ensure no one is left behind.”