Parliament has approved the Budget for 2026.
In a statement on social media, Prime Minister Robert Abela wrote: "We have just voted in favour of Budget 2026, a vote that passed thanks to a Government that believes in our country's economy and, above all, believes in its people."
He described it as "a Budget that puts families at the centre, built on a strong economy that provides a future for our children. Another tax cut for workers, and another tax cut for working parents - which will result in the middle class in our country not paying a single cent in tax. Increases in pensions and assistance for the most vulnerable among us, including persons with disabilities.
Investment in the future and in business sustainability, with AI for everyone - so that no one is left behind in a changing world.
Today we also continued to shape our identity, with two Constitutional amendments: Malta's National Anthem Day and the City of Valletta which are now enshrined in the highest law of our country."
In a statement, the Labour Party said that the Nationalist Party once again voted against the Government's Budget for the coming year.
"A Budget that provides the public with allocations in both recurrent and capital expenditure that exceed the total national wealth recorded during periods of Nationalist Government."
"A Budget which, among other measures, includes: €120 million in a social package for those most in need, €160 million in tax cuts for parents, €40 million in support for businesses to finance wage increases, €100 million in favour of the digital transformation and the adoption of AI for all. These are among the measures that Alex Borg and the party he leads voted against. Moreover, they also voted against increases in pensions, Children's Allowance, the in-work benefit, grants for first-time buyers, and support for parents of children in post-secondary education," the PL said.
"Today we once again have clear confirmation that nothing has changed within the Nationalist Party, except the face of its leadership. Nevertheless, thanks to the Government's vote, these assistance measures and incentives, among many others, will begin to come into force from the start of the coming year."
The Nationalist Party said, regarding the Budget vote, that "despite Labour's lies, the PN has already made it clear that it will retain all the assistance currently being given to the people"
"Unfortunately, once again, Robert Abela's Government has presented a budget that fails to address the major challenges facing the Maltese people, including: Unplanned population growth; The traffic crisis; Hospital waiting lists; The ever-rising cost of living; A deteriorating environment; Collapsing infrastructure; A flawed economic model," the PN said in a statement.
The party said that a budget that fails to tackle these issues is not a budget that safeguards the future of the Maltese and Gozitan people.
"What was meant to be '"the best budget in history' has delivered no real solutions in this regard. Despite attempting to throw money at problems, it has completely failed to address the real difficulties being faced by our families."
"Therefore, while once again reaffirming that, when in government, it will retain all assistance currently being provided to Maltese and Gozitan families, the PN cannot support a budget that does not address the major problems being experienced by the Maltese and Gozitan people."