In a reaction interview with MaltaDaily, Arnold Cassola expressed strong dissatisfaction with the recently announced Budget 2025, unveiled by Finance Minister Clyde Caruana. Cassola acknowledged certain beneficial measures, such as the widening of tax bands, increased Children’s Allowance, and support for individuals assisting people with disabilities. However, he emphasised that these steps fell short of addressing deeper quality-of-life issues, calling the budget a “budget of quality without quality.”
When asked what he would have done differently, Cassola highlighted the pressing issues of overdevelopment and traffic, criticising the government for not addressing these critical topics in the budget. “Overdevelopment and traffic—how are we supposed to tackle these?” he questioned, pointing out that there were no plans to counter these growing problems. Additionally, Cassola took aim at the lack of clarity on corporate tax adjustments, which are expected to rise from 5% to 15% in the coming years. He argued that local businesses, as well as foreign investors, require a stable outlook to plan for such changes.
Cassola voiced particular discontent with what he described as minimal increases for pensioners. He argued that the government’s additional €8 for pensioners is a mere gesture that does little to genuinely alleviate their financial pressures. “Don’t treat us like fools,” Cassola urged, highlighting that the government has granted a €5.24 Cost of Living Adjustment (COLA) to everyone, yet pensioners will only see €2.76 of it.
He also criticised the government’s initiative to provide free six-month gym memberships to first-time voters, implying that this was a superficial attempt to attract youth votes. “Young people are far smarter than the government takes them to be,” he argued, adding that the funds could have been better directed to support young volunteers in culture and the arts.
Cassola raised additional concerns over the budget’s push toward private pensions. While the tax band expansion provides modest relief—estimated to save individuals about €450 annually—he pointed out that the government simultaneously expects citizens to invest at least €600 a year in private pension plans. He interpreted this as an admission that the state pension may not be sufficient for future retirees. “Explain this clearly to people. Don’t deceive them,” Cassola insisted.
Moreover, Cassola touched on the implications of population growth on the labor force, with the Finance Minister projecting an increase in workers. With Malta already experiencing full employment, he suggested that this means further reliance on foreign labor, potentially exacerbating overpopulation issues.
Cassola concluded his critique by reiterating that Budget 2025 is focused more on quantity than on improving quality of life. He lamented the lack of substantial initiatives to tackle environmental challenges, overpopulation, and the impact of overdevelopment on daily life. “Quality of life—how is it going to improve?” he asked, emphasising that the budget fell short in offering any clear direction on enhancing the living conditions of Maltese citizens.
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