Budget day has finally arrived, and after much pomp and fanfare, Finance Minister Clyde Caruana will be reading the Budget Speech later tonight starting at around 18:30.
There has been much speculation on what to expect with several figures being thrown about. Yesterday, the Prime Minister announced the continuation of energy and fuel subsidies. The Maltese Herald has done some research and and this is what we understand will be announced later tonight.
Budget 2026 – Key Measures
Education & Gozitan Students
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Monthly grant for Gozitan students studying in Malta to increase to €280.
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Applies to students over 18, permanent residents of Gozo, and enrolled full-time in educational institutions in Malta.
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Around 1,000 students expected to benefit.
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Estimated annual cost: €5 million.
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Current assistance: €500 every three months (€166.60/month) → increase of over €100/month.
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Grant intended to help cover travel and accommodation expenses.
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Measure replaces a scrapped plan to build student accommodation in Pietà (Dar Fatima project), which was cancelled after high refurbishment costs.
Family & Child Benefits
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Birth/Adoption Bonus increased by €500:
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€1,000 for the first child
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€1,500 for the second child
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€2,000 for the third child and beyond
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Children’s Allowance boost for low-income families (income < €30,000):
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Additional €250 per year, paid quarterly.
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Other Budget Highlights
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Cost-of-Living Adjustment (COLA): less than €5 per week.
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Pensions: set for a significant (“hefty”) increase according to the Prime Minister.
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