[Blog] The Budget – A Big Blunder?

Prior to the Budget Speech by the Prime Minister on 19 June 2026, organisations and citizens from all quarters submitted their proposals to the government. Democracy Watch invited the PM to deliver a Budget Speech that would contain a philosophy capable of inspiring confidence in the population regarding the future of our country.

The country can only move forward if the people are generally in agreement with government policies. Did the PM achieve that with his Budget Speech?

What do we observe? The Budget Speech contains multiple measures to buttress various sectors. That is a normal feature of a budget speech, but he committed a big blunder when he announced abrupt reform measures concerning the basic pension scheme, depriving thousands of citizens of a much-needed pension.

Why are we severe in our assessment? Because the PM is not a newcomer to politics. He has occupied the post for more than 15 years. He should know that reforms of such a nature should not be inflicted on the population without proper consultation. It is not surprising, therefore, that the reform was met with an avalanche of bitter criticism from almost all quarters on the radio, television, the press and social media. The pressure has already led the government to retract its major proposal of means testing for pensions.

We believe that the pension reforms should have been dealt with ahead of the Budget Speech. The PM said that he acted on a technical committee report on pensions. That report was not made public or tabled in Parliament for debate. Worse, the report was not circulated to Cabinet. What sort of governance is that?

The PM deliberately chose not to follow the correct procedure, and he should bear responsibility for his gross misjudgment. He cannot throw the blame on the authors of the technical report, as they are not policymakers. Nor can he associate his Cabinet ministers with his blunder, as they were unaware of the report. They were briefed on the main aspects of the Budget only two hours before the speech.

Social media reported during the weekend that the PM had to find ways to compensate for the rent money from Diego Garcia. The millions of British pounds promised have not yet been paid, as the Chagos agreement has not yet been signed.

But who is to be blamed for the delay in signing the agreement? He decided to propose several flimsy amendments and, by the time a fresh draft was prepared, other geopolitical considerations came into play. The situation has now become more complicated with the growing opposition from Washington and London. He therefore decided to find the funds from the pension budget without carefully analysing the consequences.

What will the PM do to weather the storm that is rapidly gathering momentum?

Democracy Watch has no further advice to give to the PM. He should assume full responsibility, clear the mess and learn to change his ways.

The PM has now taken stock of the brewing social unrest that could affect the entire country and damage his own image. In Parliament on 22 June, he announced the government's decision to freeze the pension reform measures. There is relief in the air, but questions are being openly raised about the capacity of the PM and his government to deliver effective governance.

We have learned that the UK Prime Minister, Sir Keir Starmer, has resigned to allow his party to choose a new leader ahead of the next general election. Should not the Labour Party here reflect on that decision by the British Labour Party?