Prime Minister and Labour Party Leader Robert Abela stated that the 2026 Budget confirms that “a Labour Government is the only guarantee for families.” Speaking at a political event, Dr Abela said the Budget delivers “the largest increase in social benefits in history amounting to €120 million,” alongside “€160 million in tax cuts and a 15% rise in student stipends.”
He explained that the Government has managed “to reduce the tax burden while collecting more revenue,” which is being redistributed “because this Government’s economic policy is an economy for the people.” Families, he said, “will pay no tax on the first €1,000 they earn monthly,” and will continue to benefit from “energy subsidies and new social measures.”
Abela also highlighted increased pensions, noting that pensioners “will receive more than double the COLA next year.” He contrasted Malta’s policy with Europe’s, where “tax increases and pension freezes” are common.
The Prime Minister confirmed that the Government has allocated “€1,100 million in capital expenditure for the 2026 Budget,” three times more than under past administrations. He concluded that “the Labour Party in Government will remain the guarantor for Malta’s families, youth, and pensioners.”
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