Clyde Caruana will present Budget 2027 to Parliament on Monday 26 October 2026. It is the government’s first budget since the May election. The minister has already made one thing clear. Keeping energy prices stable comes first, and some election promises will have to wait.<\/p>\n\n\n\n
Below is what has been confirmed so far, what is only an estimate and what is still a proposal.<\/p>\n\n\n\n
The pre-Budget document came out on 30 September, and Caruana confirmed that fuel and electricity<\/a> prices will stay protected.<\/p>\n\n\n\n That protection has become far more expensive. Spending on energy and food subsidies dropped from \u20ac242.5 million in 2023 to \u20ac188.1 million in 2025. For 2026 it is projected at \u20ac391.7 million, and for 2027 at around \u20ac400 million. A further \u20ac75 million is planned for energy infrastructure.<\/p>\n\n\n\n The government says removing the subsidies would do more harm than good. By its own estimates, phasing them out over three years would cut about \u20ac600 million from GDP and cost around 3,000 jobs.<\/p>\n\n\n\n Caruana accepts the system is not perfect. “We’re probably wasting \u20ac20 million,” he said on 6 October, “but the opportunity cost is much higher.”<\/p>\n\n\n\n For households, utility and fuel prices should stay where they are in 2027.<\/p>\n\n\n\n Ahead of Malta’s Budget 2027, Caruana expects the cost-of-living adjustment (COLA) to be around \u20ac5 a week. The final figure has not been set yet. The 2026 increase was \u20ac4.66.<\/p>\n\n\n\n At \u20ac5 a week, a full-time employee would get \u20ac260 more over the year. Employers will need to include this in their payroll budgets.<\/p>\n\n\n\n The government also says the subsidies keep COLA low. Without them, it estimates the 2027 increase could have reached \u20ac18.05 a week.<\/p>\n\n\n\n During the campaign, Labour promised a tax-free \u20ac1,000 every year to workers who have lived in Malta for at least five years. People earning less than \u20ac12,000 would get a reduced amount, with a minimum of \u20ac500. The plan would cost about \u20ac200 million a year.<\/p>\n\n\n\n Caruana now says the bonus is unlikely to be in this Budget. “It’s a question of priority,” <\/em>he said, pointing to the cost of subsidies. He has not dropped it. The promise is meant to be delivered within the five-year term, and he said it will not be left until the final year.<\/p>\n\n\n\n They are possible, but not the main ones. “I’m not going to touch VAT, income tax, or social security,<\/a>\u201c<\/em> Caruana said. He added that he is considering a “handful” of other changes, without naming them.<\/p>\n\n\n\n Specific fees, duties or levies could change instead. Property owners, businesses and self-employed people should check the detailed Budget documents.<\/p>\n\n\n\r\n\t\tCOLA: about \u20ac5 a week<\/h3>\n\n\n\n
The \u20ac1,000 bonus: probably not this year<\/h3>\n\n\n\n
New taxes?<\/h3>\n\n\n\n