Prime Minister Robert Abela has pledged further income tax cuts for parents and an additional €10 a week for pensioners, as he outlined key measures expected in Monday's Budget, saying the government would continue protecting families from the impact of international economic challenges.

Addressing a political activity under the theme 'Malta Għalik' (Malta for You) at the Orpheum Theatre in Gżira on Sunday, Abela said a middle-class family with two children would become exempt from paying income tax, describing Malta as the first country in the world to introduce such a measure.

Pensioners, meanwhile, will receive an additional €10 a week, equivalent to €520 a year, he said.

Abela said the measures were possible because of the country's economic performance and the government's decision to maintain subsidies despite pressure to reconsider them.

Abela contrasted Malta's approach with that of other European governments which, he said, were being forced to introduce austerity measures that hurt families and businesses.

The Prime Minister said the government would continue supporting households and businesses through international crises, including geopolitical tensions, wars and energy market shocks.

"Subsidies have been there, are still there, and will remain there," he said, adding that the government would not abandon families when they needed support most.

Abela said that Malta was in a different position from several other European countries, where governments were struggling with economic pressures and rising borrowing costs.

Referring to France, he said the country was currently borrowing at a rate of 5%, arguing that developments in major European economies also affected Malta.

He warned that the coming months could bring further geopolitical uncertainty, pointing to elections across Europe and growing public discontent linked to the cost of living.

Abela said that protests across the continent reflected frustration among people who felt their governments were failing to support them during difficult times.

He said Malta's economic circumstances could not be separated from international developments, noting that the country depended on exports and faced costs linked to transporting goods by air and sea.

Malta also did not benefit from cheap electricity purchases, he said, adding that the government had nevertheless managed to shield the country from pressures being experienced elsewhere.

"Despite all these challenges, we are the only country which is not experiencing what other countries are," Abela said.

He credited businesses for contributing to a strong and resilient economy by providing dignified employment, while also thanking workers, including the self-employed, for their contribution.

The Prime Minister also criticised the Nationalist Party, accusing it of supporting austerity measures when it was in government and warning that a change in government could put existing subsidies at risk.

Abela referred to the economic policies adopted under former Nationalist Party Prime Minister Lawrence Gonzi following the 2008 financial crisis, arguing that austerity had failed to protect families from economic hardship.

He said the government would not return to a situation in which international tensions were used to justify tax increases, frozen pensions and higher electricity bills.

"As long as the country trusts me in this position, that scenario will never happen again," he said.

Abela also accused the Opposition of changing its position on subsidies, pointing to recent comments by PN Finance Shadow Minister Adrian Delia calling for a "serious review" of the measures.

He said that such a review could put the government's support for households and businesses at risk, despite the Opposition's pre-election assurances that the subsidies would be retained.

Abela also referred to previous Nationalist Party governments' decisions concerning children's allowances and differences in pensions paid to people born in different years.

He said the government's approach was instead guided by experts and international credit rating agencies, rather than the Opposition's proposals.

The Prime Minister said that the government's economic performance had created the financial capacity to introduce further measures benefiting families.

"We will decrease income tax on parents," he said, adding that the government would deliver on its electoral commitments.

He said that the Budget would give Maltese and Gozitan families further reasons to feel proud of the country.

Earlier in the political activity, Deputy Prime Minister Ian Borg said that, on the eve of the Budget, the public was discussing what additional benefits the government would provide rather than what it would take away.

He said this was happening despite the international challenges facing the country.

Borg contrasted the government's approach with that of its political opponents, saying that other administrations would use comparatively smaller challenges as a reason to claim there was nothing more they could offer beyond their existing promises.

He also criticised governments that failed to fulfil their electoral commitments throughout a legislature, presenting the upcoming Budget as an opportunity for the government to continue delivering on its promises.