Budget 2026: Momentum welcomes many positive measures, highlights shortcomings and the urgent environmental crisis that fueled public protests outside parliament

Momentum has issued its reaction to the government’s latest measures. Carmel Asciak, Momentum Treasurer, gave the following assessment on behalf of Momentum.

Momentum views the introduction of the seven-day bereavement fund for the loss of a child as a positive and compassionate measure that can help ease the immense pain couples face during such a tragedy.

Furthermore, the increase in grants for new births or adoptions is a most welcome step, as is the circa €100 a month rise for Gozitan students studying in Malta.

While new income tax brackets for parents are welcome, Momentum notes that the €4.66 COLA, which remains subject to income tax, is certainly not sufficient to make up for rising food and medicine prices.

It must also be noted that larger families are not only a financial decision. Stress and the impact of both parents needing to work long hours has an impact on their mental health and the wellbeing of families.

Regarding pensions, it is commendable that a new tranche of money (19.23 cents) has been reserved for the 25,000 pre-1962 born pensioners who paid the highest rates of contributions. However, this means the discrepancy with their post-1962 counterparts still stands at €41 a week (down from €82 in 2023).

It is, however, very disappointing that the other 50,000-60,000 pre-1962 born pensioners have again been left with zero euros, instead of being given a fair pro-rata increase. These pensioners must contend with the daily inflation of 2025 and 2026. It is very disappointing that the Maltese state continues to discriminate against them because of their age.

Momentum welcomes with great positivity the removal of the discrimination against people between the ages of 16 and 18 regarding their social security contributions. Momentum had long advocated for this change, and it is good to finally see it corrected. This is a clear example of our policy proposals having an impact.

It is also positive that the Qormi and Gzira Health Centres will be kept open 24 hours a day.

The planned AI training course and the free AI subscription are definitely needed. This will help those who cannot afford it and mitigates the risk of AI creating a further gap between the haves and the have-nots.

Momentum would have liked to see the Minister kickstart more opportunities for working from home, flexi-hours, and similar measures. Such policies can lead to greater productivity, reduced traffic, and more leisure time for families. Unfortunately, the government has kept completely silent on this.

Finally, we believe the Government has lost yet another opportunity to address the transport and traffic issues. Simply stating that a Mass Transport System would “royally screw” up finances is not enough.

The government should have long ago started the process to expand our bus fleet, including feeder buses, whilst also increasing routes, frequency, reliability, and punctuality. It is only by getting private cars off the road, thanks to an efficient public transport system, that progress can ever be registered in this area.

Momentum notes the large public outcry, highlighted by the protests surrounding the controversial planning reforms. We firmly believe that any economic progress is fundamentally undermined if it comes at the cost of irreversible environmental degradation. The government cannot ignore the clear link between its flawed planning policies and the long-term well-being of the country, which is being eroded by the destruction of our natural and urban landscapes. True progress must be sustainable, not destructive.

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