Malta’s Ministry of Finance delivered the 2026 Budget Speech on Monday, October 27. Lawmakers have outlined new fiscal measures and support initiatives to boost high-value industries, including iGaming. The draft budget also projects an increase in GDP and a decrease in fiscal deficit next year.
Highlights from Malta’s 2026 Budget Speech
- Gaming and digital entertainment present huge opportunities for employment in Malta. The government plans to incentivise the sector by establishing a legal framework for indirect taxation.
- The government is encouraging the youth to build a career in gaming. Malta has partnered with Unity and Unreal Engine to train Maltese students in the most widely used global gaming platforms.
- The projected fiscal deficit in 2026 is around 3.3% of Malta’s GDP. The government plans to bring this figure under 3% by 2027 to meet the current standards of the European Union.
Budget Speech 2026 Forecasts Strong Fiscal Performance
The Maltese Finance Ministry delivered the 2026 Budget speech on October 27. The draft budget highlights Malta’s fiscal performance during the last few years and predicts future results. Proposed by Prime Minister Robert Abela and Finance Minister Clyde Caruana, the budget outlines several economic initiatives aimed at boosting Malta’s economy.
The consolidated fund for 2025 is approximately €8.03 billion, out of which €7.3 billion will come from tax revenue and €682 million from other sources. These numbers represent a sharp increase from €7.86 billion in consolidated funds in 2024. Gambling revenue continues to support Malta’s financial prospects, as outlined in the MGA’s 2024 Annual Report.
The draft budget estimates that the consolidated funds will increase to €8.43 billion in 2026. Malta’s earnings and expenses are projected to reach €8.15 billion and €1.28 billion by 2028. At the same time, the fiscal deficit will continue decreasing YoY to €662 million in 2026. Authorities believe increased revenue and borrowing will stabilise the GDP and debt, fuelling financial growth in the coming days.
Digital services in Malta, including online gambling, continue to deliver high value to the economy. According to Malta’s 2025 Economic Survey, the gambling and betting industry increased by 1.1% YoY in Q2 2025. The online gambling sector also contributed 4.8% to the national GDP in the first half of 2025.
Malta’s GDP expanded by 3.1% in the first half of 2025. The figures represent a sharp increase in the national economy, surpassing the average growth in the European Union and the Eurozone, which posted figures of 1.4% and 1.3% respectively. During a press briefing, PM Abela highlighted the long-term strategies detailed in the 2026 budget.
The Prime Minister said:
We are building an economy that looks beyond short-term gains. Malta’s strength lies in its ability to adapt and invest — from digital innovation to clean energy and creative industries. The 2026 Budget reflects our confidence in a stable, diversified and competitive future for the Maltese economy.
Malta’s 2026 Budget to Introduce Strategic Projects Incentivising High-Value Industries
Malta’s budget for 2026 has provisions for incentivising high-value industries. The government plans to invest €400,000 in the Malta Gaming Incubator and €4 million in new esports ventures. An additional €900,000 has been earmarked for Maltese businesses to develop their own intellectual properties.
The Malta Gaming Authority will continue to play a pivotal role in implementing the government’s vision. The gambling watchdog has already introduced several measures, including a new tool to help players track their gambling behaviour, to regulate the lucrative gambling industry in the nation.
The 2026 budget predicts €84.7 million in revenue from the MGA, of which €67 million is expected to be generated from gambling taxes and licensing fees. Authorities also plan to introduce a new indirect tax framework for high-value sectors. This complements the government’s digital development initiatives, such as the European Digital Innovation Hub, which will provide startups and SMEs free access to high-performance computers, cloud computing and AI.
Malta’s gaming economy contributes 8% to the national GDP. The government plans to incentivise this sector and attract foreign investments to create high-paying employment opportunities. Malta has partnered with Unity and Unreal Engine to train the local youth in two of the world’s most widely used gaming platforms. Over 400 students are currently Unity certified.
These investments have opened new career opportunities for young people in game production, immersive technologies, simulation, animation, AR and VR. The 2026 Budget Speech has highlighted Malta’s commitment to supporting its high-value industries. With amended tax brackets and fresh investments in the pipeline, Malta’s online gambling industry is bracing for a significant boost.