Malta’s Minister for Finance, Clyde Caruana, will be delivering his sixth 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 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, with the Finance Minister and Prime Minister Robert Abela both dropping hints as to its contents.

We already know that the subsidies on energy and fuel prices will continue “come what may” as the Government prioritises stability in a turbulent geopolitical situation. The subsidies are expected to cost around €400 million this year, with the same amount forecast for 2027.

The huge outlay on what has emerged as a defining feature of the Abela administration means that other policies need to take a back seat. Minister Caruana has strongly indicated – but not confirmed – that the €1,000 ‘superbonus’ promised ahead of the election in 2026 will not be implemented next year.

Earlier this month, the Prime Minister revealed two measures that will form part of the 2027 Budget, both related to pensions. One builds on the incremental changes to the survivor’s pension enacted in previous years by ensuring that widows and widowers will start receiving the full pension entitlement of their deceased spouse. The other is aimed at helping former drug addicts and others who needed to follow a rehabilitation programme by granting them two years of National Insurance credits.

In his Pre-Budget presentation, Minister Caruana said the COLA is expected to be around €5 per week, although independent analysts have questioned this figure and predicted an increase of €6.41.

He also said that the core taxes – income tax, VAT and social security – will not be touched, but indicated that other taxes may be increased or introduced.

Mr Caruana also indicated that this will be a Budget of “difficult decisions” that had been put off in previous years, saying that several longstanding issues will be addressed through measures that will be announced today.

That statement certainly went down well with Malta’s business community, which has become increasingly strident in its calls for decisive action that goes beyond the familiar support to household consumption.

The shift, after several Budget that were, by the Minister’s own admission, all about giving, may well be what he will be remembered by.

Stay tuned to WhosWho.mt for our extensive Budget coverage.