Prime Minister Robert Abela recently promised that the 2026 Budget will be the “best in history.” Whether this turns out to be a hollow boast, a rallying cry for party loyalists ahead of the next election, or a carefully measured blend of truth and political strategy remains to be seen. But if the Prime Minister is confident enough to set the bar so high, then the nation should take him at his word — and hold him to it.

If we are to judge the 2026 Budget by more than just grand headlines, it must go beyond token measures and deliver reforms that truly improve people’s lives. Here are some concrete steps that could help make good on the hype.

First, tackle the basics of fairness in taxation:

  • The cost of living allowance (COLA) should no longer be taxed. This is not a luxury — it’s an adjustment to keep up with inflation, and taxing it is effectively giving with one hand and taking with the other.
  • Scrap tax on the first €10,000 earned from overtime. For many workers, overtime is not optional but necessary to keep pace with rising living costs.
  • Exclude national insurance contributions from taxable income to end the current double taxation scenario. Those funds could instead be channelled into building a robust second-pillar pension system, ensuring long-term security.

Second, stop looking at the economy solely through the lens of short-term spending power and start addressing the structural issues that are eroding our quality of life. Malta has reached breaking point after a decade of unplanned population growth. Rebalancing the system will require bold, not cosmetic, measures:

  • Begin recovering funds lost in the Vitals/Steward hospitals scandal and reinvest them directly into the health sector.
  • Unveil a credible, funded plan to improve connectivity between Malta and Gozo — more than just empty talk.
  • Take concrete action to ease traffic congestion and clamp down on reckless drivers who currently act with impunity.
  • Reform the planning system so that safeguarding the environment and residents’ quality of life takes priority over unrestrained construction.
  • Introduce genuine family-friendly measures, such as enabling either parent to work remotely, so that raising children is not treated as a professional handicap.
  • Reopen trade schools at secondary level to address the chronic shortage of skilled workers, reducing the dependence on importing labour and the resulting population pressures.

If this government truly wants to deliver the “best budget in history,” it must recognise that quality of life is not measured solely in euros and cents. It is measured in cleaner air, safer roads, manageable commutes, time with family, and the ability to live and work in dignity.

The 2026 Budget will be the ultimate test of whether bold rhetoric can be matched by bold action.