The Cost of Living Adjustment (COLA) for the coming year will be €4.66 per week, Finance Minister Clyde Caruana said during his Budget speech.

Speaking in Parliament, Caruana said that Malta's economy is projected to grow by a rate of 4.1% in real terms this year, maintaining the same pace in 2026. The minister said that the main driver of this growth is expected to be domestic demand, public investment as projects reach maturity, the export of digital services, and an increasingly resilient tourism sector.

He said that the increase in employment will stabilise and wages are expected to continue strengthening, while inflation is expected to stabilise close to 2.2%.

Regarding the national debt, the minister said that despite the support provided over the past five years, the debt burden has remained below 50% of GDP, and by the end of this year, it is expected to stand at 47.1%. He said that in the coming years, this rate is expected to continue reducing to pre-pandemic levels.

While the debt burden remains well below the Maastricht treaty 60% requirement, the Budget document itself shows that the national debt itself will continue rising in the coming years, reaching €14 billion in 2028.

Regarding the deficit, the minister said that for the Budget for this year, he had projected a deficit of 3.5%. But the rate is actually expected to fall further than originally thought, reaching 3.3% of GDP for this year, he said.

He said that while for the coming year fiscal measures, social support, and economic incentives exceeding €200 million are being announced, the deficit rate is expected to continue falling to 2.8% of GDP, "thereby bringing next year below 3% as required by the European Union."