Alternattiva Demokratika yesterday criticised ‘socially regressive’ policies in the Budget, and said that if elected to Parliament it would make social justice a priority.

AD chairman Michael Briguglio said: “The proposed budgetary decreases in income tax might lead to serious problems in Malta’s welfare system in the years to come. Unless the economy grows at a rate that goes beyond recent trends, we will subsequently be likely to have to pay up for this through a reduction of public services, more borrowing or compensating tax elsewhere”.

He added that the income tax deductions are regressive as they are not benefitting the vast majority of workers who earn less than €19,500. Dr Briguglio criticised the fact that single minimum wage earners would now have to pay income tax.

“AD is proposing an increase in minimum wage and decent pensions, progressive and sustainable fiscal policy, and an updated cost of living adjustment mechanism,” he said.