The Government has presented yet another positive budget, one that enhances social measures and promises a robust economic future for the country.

The focus this time is on the need for quality, as the government has listened to the concerns of the people and is committed to address the key issues that affect them and that are important to them. This can only be achieved because our economy is performing exceptionally well, despite ongoing global turbulence, and this success is entirely thanks to the sound decisions made by this administration.

“We were there for you, we were there for the people, we were there for businesses,” stated Minister Clyde Caruana in Parliament.  Not only have we rebounded effectively as an economy, but the Government is now able to address and look beyond immediate challenges and provide citizens with the lifestyle they truly deserve in the long term.

This year, the emphasis is not only on budget day, but rather on budget week, as we are in for a comprehensive elaboration on these measures on the days to come.

The central premise of the budget is that all initiatives must derive from the principle of stability. This foundational approach shapes the key measures announced, which include: 

• An allocation of €48 million in support for families facing the cost of living. 
• Ensuring price stability for electricity bills. 
• Further strengthening the electricity distribution system. 
• Implementing policies that favour large renewable energy projects. 

Higher Wages and Lower Taxes for All

• By 2025, approximately 18,000 more workers will not pay tax. 
• An average family with two children will see an increase of around €1,800 in disposable income due to a reduction in income tax. 
• Additionally, families will receive €250 more for each child in children’s allowance. 
• For every worker, there will be no tax deducted from the first €1,000 they earn.

CURRENT BANDS

TAX BANDS FROM NEXT YEAR

Tax reductions will result in: 

• Between €435 and €675 more for individuals on a single rate. 
• Between €345 and €645 more for those on a married rate. 
• Between €375 and €650 more for individuals on parental rates. 

Families at the heart of decision making

• In 2025, there will be an increase of €250 in children’s allowance per child. 
• Improvement in in-work benefits, where income tax payments will be disregarded. 
• A payment of €1,500 for parents of children who continue their studies. 
• Further enhancements to the bonus per child, including an increase of €500 in the birth and adoption bonus for the third child and subsequent children. 
• Vouchers for students to purchase books. 
• A home library grant of €150 for children from vulnerable families. 
• Tax exemption of up to €6,500 on private school fees. 
• National screening for children with communication challenges. 

Assisting youth and young couples

• Free gym access for young people born between 2005 and 2007.
• Extension of schemes for first-time buyers, second-time buyers, and those who buy in Urban Conservation Areas (UCA).
• €1,000 per year for ten years for first-time buyers. 
• Increase in the marriage grant. 
• Weekly increase in fostering allowance. 
• Provision of paternal leave and sick leave during IVF for self-employed individuals. 

Supporting the elderly

• An additional increase of €8 per week for pensioners. 
• Increased support for elderly individuals aged 75 to 79 who continue to live in the community. 
• Greater tax exemptions for working pensioners. 
• Additional increase in widow’s pension. 
• Increased income for service pensioners. 
• Enhanced bonuses for those who do not qualify for a pension. 

Planning and Delivering the Next Economy

• Implementation of the best collective agreements for educators. 
• Investment in the Gozo Educational Campus. 
• By the end of this year, an Economic Migration Policy will be released for public consultation. 
• Focus on quality tourism over quantity, to attract higher-spending tourists to our country. 
• Establishment of a new incubation centre for start-ups at Ħal Far. 
• Allocation of €10 million to provide capital for new companies. 
• Development of a new Small and Medium Enterprise park in Ħal Far. 
• Introduction of visas for esports athletes. 
• Incentives for farmers to cultivate more agricultural land.

 A Healthier Country

• Expansion of mental health services in the community, with an expected 90,000 interventions. 
• Broadened access to aid in case of illness. 
• Increased availability of free medicines. 
• Enhanced support for disabled individuals and their carers. 
• A fourth increase in disability allowance. 
• Caregiver’s grant extended to include children under 16. 
• Increased tax credit for therapies for children with disabilities. 
• Two years of stamp credits for drug addicts. 
• Establishment of a multi-sensory room for Dar Kenn Għal Saħħtek. 
• Therapy services provided for cancer patients. 
• An increase of 5,000 operations to reduce waiting lists. 
• Abolition of the tax on sanitary products for women. 

Quality In Terms of Tranquillity and Enjoyment

• An increase in vehicle-free spaces. 
• More open spaces for public use. 
• Greening of our valleys. 
• New measures implemented to address traffic issues. 
• Extension of schemes for the purchase of electric vehicles, bicycles, and e-kick scooters. 
• Restoration schemes for historical heritage. 

Security, Justice and Serenity

• Enhanced justice through reforms in the family court system. 
• Improvements to the scheme for police officers with over 25 years of service. 
• Establishment of a new hub at Mtarfa for victims of domestic violence, including a panic button service. 
• Creation of an OHSA centre in Gozo for immediate assistance. 

“I believe in my country. Now it’s time to start the next journey, a journey that should lead us to make the next leap for better economic development. We feel the need to build the country of tomorrow. The future starts here,” stated Minister Caruana.  

He expressed his vision for the nation, saying, “I want to see a country that offers serenity, a beautiful country, a modern country, a country that provides a better future for our children, and a country that offers opportunities and a better life to young people. Additionally, I envision a country that brings peace of mind to our elderly.” 

Ultimately, he concluded, “This is our aspiration: to create a country where the key word is quality.” 

Click here for the full budget speech.