Budget 2026 to be presented on 27th October with pledge of stability and investment

Prime Minister Robert Abela has announced that Malta’s 2026 Budget will be presented in Parliament on 27th October 2025, promising a package centred on stability, investment, and support for households and businesses.

Dr Abela said the upcoming budget will deliver lower taxes, more benefits, continued stable utility bills, and the 11th consecutive pension increase, while also outlining new investments to strengthen economic resilience.

He described it as “the best budget ever,” adding that future budgets would continue along the same path.

The Prime Minister emphasised that Malta’s approach contrasts with other European economies facing austerity, insisting that Government will sustain growth through investment rather than cuts.

Finance Minister Clyde Caruana has confirmed that the government is on track to reduce the national deficit below 3 per cent, earlier than required under the EU’s Excessive Deficit Procedure. This adjustment will be aided by the phasing out of restructuring costs for the national airline and a decrease in subsidies.

Mr Caruana also pointed to Malta’s 5.9 per cent real GDP growth in 2025 as a key factor enabling the government to strengthen support measures for both families and businesses, while ensuring fiscal discipline.

Together, these measures are intended to position Malta as a stable and competitive environment for investment, even as many European counterparts face tighter economic conditions.