Malta’s Minister for Finance, Clyde Caruana, will be delivering his fourth Budget speech on Monday evening (tonight). The speech, delivered to Parliament, will be broadcast live.

The annual Government Budget presentation typically lasts around two and a half hours. It announces the incentives, grants and schemes the Maltese Government will undertake over the following year, not to mention key announcements like changes to tax rate and the Cost of Living Adjustment (COLA).

Minister Caruana will present a copy of the Budget publication to President Myriam Spiteri Debono at 4.45pm.

One hour later, the Minister, together with Parliamentary Speaker Anġlu Farrugia will arrive in Parliament, where the Budget speech will be delivered.

At 6.30pm, Minister Caruana will begin his Budget speech, expected to last until roughly 9pm. It will be televised live on the Parliament’s official website, as well as on the national broadcaster.

The Budget speech is always a highly anticipated affair, but this year’s nonetheless stands out for Prime Minister Robert Abela’s promise to deliver the “biggest tax cut in Maltese history” for middle income earners, expected to cost the Government more than €100 million in lost revenue.

Changes to the pension system are also being forecast, although their exact nature, and whether they will involve legislative updates or improved fiscal incentives, remain to be seen.

Likewise, the real estate sector will be waiting with bated breath to see whether a generous tax incentive on old and characteristic properties, and those situated in village cores, will be extended.

Observers will also be looking for pledges to bolster Malta’s infrastructure while adhering to its sustainability commitments, with infrastructural investment singled out as a key priority in audit and advisory firm EY’s annual country attractiveness report last week.

The costly energy and fuel subsidies introduced by the Government during the COVID-19 pandemic and that have remained in effect since are not expected to be rolled back on any short timeline, with Minister Caruana pledging their continuation.

The COLA was previously declared to be around the €5.75 mark – less than half the €12.81 awarded last year, in line with the far lower inflation registered throughout 2024.

Following the Budget speech, Prime Minister Robert Abela as well as PN Leader Bernard Grech are expected to each provide their reactions.