Following the presentation of the Budget 2026, Prime Minister Robert Abela stated that the Maltese and Gozitan people are “benefiting from the best budget in history.”

He stated that the Government will continue to invest in families with an unprecedented measure in a generation, that of a larger tax cut for working parents. “In Malta, we will have a middle class of parents with two or more children earning up to €30,000 each who, within three years, will no longer pay any tax.”

The PM added that “this means that these parents will effectively be tax-free for almost a quarter of a century. Working parents with one child will also benefit from a significant tax reduction.”

“A budget that gives peace of mind that Government is there for you. We are there when you start a family, when you raise children, and when you grow older. Because with strong families, we have a strong economy,” emphasised the Prime Minister.

He added that those most in need will benefit from a €120 million social package. “A single parent with two children on the minimum wage will see her income increase by €650 through the In-Work Benefit and higher Children’s Allowance.”

Abela noted that Maltese and Gozitan pensioners will enjoy the eleventh consecutive pension increase through an adjustment that is double the cost of living. Additional increases are being granted to widows and to those born before 1962, as the Government continues to correct an injustice created in 2006.

The Prime Minister also referred to the 15% increase in stipends for all students and the higher grant for Gozitan students studying in Malta.

Deputy Prime Minister Ian Borg remarked that Budget 2026 builds on the achievements of the Maltese and Gozitan people in recent years, ensuring that economic stability truly translates into a better quality of life while steering the country towards greater resilience and sustainability.

Minister for Finance Clyde Caruana said that this Budget once again demonstrates that “the Government remains a guarantee for the people.”

“Just as we did not hesitate to take the necessary decisions in the face of major challenges in recent years, today we continue to make bold, forward-looking choices. This is a budget built on well-studied, responsible measures, one that will positively shape the future of Maltese and Gozitan society,” stressed Minister Caruana.

Photo: DOI

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