Nationalist Party leader Alex Borg said that the government had, with the Budget for 2027, delivered a “knee-jerk reaction” rather than a long-term economic vision for the country.

Speaking in Parliament on Monday during his Budget reaction, Borg said that the government is relying on short-term measures that offered immediate benefits but failed to address the country's longer-term economic challenges.

The Opposition Leader began his speech by addressing the €1,000 bonus announced in the Budget, saying a Nationalist government would retain the measure because it provides assistance to workers. However, he questioned how much of a difference the payment would ultimately make to people's lives.

Borg said that while the PN agreed with measures such as tax reductions for parents and pension increases, it disagreed with what he described as the government misleading the public over the actual value of the pension adjustment.

He referred to the Prime Minister's announcement that pensions would increase by €10 per week, arguing that Finance Minister Clyde Caruana subsequently clarified that the amount included the cost-of-living adjustment (COLA).

According to Borg, the actual increase would therefore amount to just €3.59 per week.

Holding up an advertisement from the Labour Party promising pensioners an increase of €50 per week, he accused the government of making a fool of the public.

The Opposition Leader then turned to poverty and financial insecurity, citing figures which he said showed that 95,000 people in Malta were at risk of poverty.

He questioned how an economy experiencing such substantial growth could leave so many people dependent on state assistance.

Borg also referred to figures indicating that 105,000 people could not afford an unexpected expense, while 24,000 full-time workers depended on state support to make ends meet.

He argued that the government placed too much emphasis on average wages, insisting that the median wage offered a more accurate picture of the financial circumstances of ordinary workers.

Borg also criticised the government for failing to make any reference to Labour’s Wellbeing Index in the Budget, arguing that the omission raises questions about whether the country’s economic growth is translating into a better quality of life for its people.

Borg said the Wellbeing Index, introduced by the Labour Party in its electoral manifesto as a measure of success beyond gross domestic product (GDP), was not mentioned once throughout Caruana’s Budget speech.

Borg said he had expected this year’s Budget to place greater emphasis on people’s quality of life, particularly given Labour’s previous commitments to measure the country's success through more than economic growth.

“People should judge the Budget based on how it improves the lives and wellbeing of the people,” he said.

Economic growth and population pressures

Borg accused the government of relying on short-term measures that offered immediate benefits but failed to address the country's longer-term economic challenges.

He argued that Malta's economic growth was increasingly being driven by population expansion rather than improvements in productivity.

Referring to figures showing that Malta's population had reached almost 600,000 by the end of 2025, Borg said the country's expanding economy was largely the result of having more people working and consuming, rather than workers producing more.

He pointed to comments by the Finance Minister suggesting that Malta would need to reach a population of 800,000 to maintain its current rate of economic growth.

Borg questioned whether such a model was sustainable, particularly in light of mounting pressure on the country's infrastructure and public services.

“We are tired of traffic, we are tired of waiting for medical attention in the emergency room,” he said.

He argued that increased productivity, rather than continued population growth, should become the main driver of the economy.

Borg also referred to Malta Vision 2050, claiming that the Government's projections anticipated economic growth of 4% but productivity growth of only 1.5%.

He challenged the Finance Minister to identify how many new economic niches had been introduced in the Budget speech, answering that none had been mentioned.

Borg said the country needed to move towards an economic model in which businesses invested in technology and automation, allowing them to increase output without relying solely on recruiting more workers.

He also accused the government of failing to consult adequately with the General Workers' Union (GWU), which he said had warned against populist measures.

The Opposition Leader reiterated the PN's proposal to refund first-time buyers 50% of the interest they pay on their home loans during the first 10 years of their mortgage.

The refund, he explained, would be paid monthly and transferred directly into the buyer's bank account.

Education and students' wellbeing

Education was another major focus of Borg's speech, with the Opposition Leader arguing that the Budget had failed to address several persistent problems affecting students, teachers and schools.

He said children had a right to learn and pursue their ambitions, adding that Malta's future economic performance depended on the quality of the people emerging from the education system.

Borg questioned the government's decision to spend €4.5 million on the Malta Vision 2050 pavilion in Valletta, arguing that the money could have been put to better use in education.

He suggested that the funds could have helped address the shortage of learning support educators (LSEs) or financed additional laboratories at MCAST.

He also raised concerns about the lack of air conditioning in state schools, claiming that many classrooms continued to rely on ceiling fans despite Malta's high temperatures.

This, he argued, could affect students sitting for their MATSEC examinations, with candidates having to cope with uncomfortable conditions while attempting to demonstrate their knowledge.

“Exams should be there for students to show what they know about the subject and not how much they can tolerate Malta's heat,” he said.

Borg added that some schools had already installed air-conditioning systems which could not be used because of insufficient energy provision.

He also highlighted the impact of traffic on students, saying children were arriving at school and returning home late because their transport vans were getting stuck in congestion.

The Opposition Leader criticised the absence of any reference to the 2025 PISA results in the Budget speech.

He said that almost half of Malta's 15-year-old students had failed to reach the required level in reading and mathematics, and questioned whether the government was doing enough to address the problem.

Borg also raised concerns about students' screen time, suggesting that Malta should consider measures being adopted in other countries to reduce the amount of time children spend on electronic devices.

He said students should not be leaving school without a sufficient command of basic English and Maltese.

Other concerns included recurring shortages of schoolbooks, students who required LSE assistance but were not receiving it, and the wider pressures facing educators.

Citing OECD figures, Borg said Maltese teachers were the fourth most stressed educators among those assessed.

Traffic and the value of time

Borg described time as one of the most valuable resources being lost by Maltese families, arguing that daily traffic congestion was taking away hours that could otherwise be spent with loved ones.

He criticised the government for failing to mention Malta in Motion in its Budget speech, describing it as another example of a government project which had been announced but not delivered.

He said several Labour projects had been given appealing names, but that the most impressive part of some initiatives was their branding rather than their implementation.

Referring to Central Link and the Aldo Moro road project, Borg said these had been presented as solutions to Malta's traffic problems, yet the situation had deteriorated.

He argued that parents should be able to return home after work and spend time with their families rather than remain stuck in traffic.

On mass transportation, Borg called for agreement between the political parties, insisting that tackling congestion required a long-term national approach.

He said he was prepared to sit down with the responsible Minister to work towards a solution.

Electricity supply and compensation

The Opposition Leader also raised concerns about the country's electricity infrastructure, warning that Malta could not afford to experience another summer marked by power cuts.

He referred to the difficulties experienced by elderly residents during electricity outages, including people who had resorted to sitting in their cars to benefit from air conditioning.

He also recounted the case of a man who had allegedly been trapped in a lift for an hour and a half during a power cut.

Borg stressed that electricity disruptions could have particularly serious consequences for people who depended on medical equipment to survive.

He questioned what guarantees the government could offer that such individuals would not be left without the electricity needed to operate their equipment.

He also pointed out that Enemalta's accounts had not been published since 2022, calling for greater transparency over the company's financial position.

Borg said people could not simply be expected to purchase generators to protect themselves against electricity outages.

He further said that Malta ranked last in Europe in renewable energy generation, arguing that the country needed to accelerate its transition towards cleaner energy sources.

The PN's proposal, he explained, was to introduce automatic compensation for households and businesses affected by electricity outages.

Under the proposal, eligible consumers would receive compensation without having to submit additional documentation or chase payments.

He argued that smart meters already provided the necessary information about electricity supply, meaning consumers should not have to go through unnecessary procedures to receive compensation they were entitled to.

Environment and tourism

Borg also criticised the government's decision to reduce investment in Project Green from €30 million to €20 million.

He said the initiative had been presented as a means of providing more gardens, parks and open spaces, but argued that the reduction in funding demonstrated that the environment was not being treated as a priority.

Tourism was another key issue addressed in the speech, with Borg arguing that the country needed to focus less on the number of visitors arriving in Malta and more on the quality and economic value of tourism.

He said he had no objection to tourists contributing towards the country's infrastructure through the environmental contribution, but questioned the government's decision to increase the charge throughout the year.

Borg referred to concerns raised by the Malta Hotels and Restaurants Association (MHRA), which he said had described the measure as too drastic.

The PN's proposal was to apply the higher contribution during peak tourist season rather than throughout the entire year.

He argued that imposing higher charges during quieter months could place additional pressure on tourism businesses when demand was lower.

Borg also insisted that the revenue collected through the contribution should be reinvested in the tourism sector, calling for greater transparency about how much money was being collected, where it was being spent and what improvements were being delivered for residents and visitors.

He questioned the impact of the measure on Gozo, pointing out that 67% of tourists visiting the island in 2025 were domestic tourists.

Borg argued that the government needed to consider the consequences of increasing charges on visitors who were themselves Maltese residents.