No new taxes or increases to existing taxes feature in Budget 2018, with the government saying it will raise additional revenue in other ways.

Finance Minister Edward Scicluna began his Budget speech by listing some of the healthy numbers stemming from the local economy, before revealing he would not be announcing any new taxes this year.

"There will be no new tax, either direct or indirect, on income or on consumption," Prof. Scicluna said as his MP colleagues banged on their tables in approval.

He said he believed this was the first time in local history that no taxes or excise duties were being increased, including on items such as tobacco products, wines and spirits.

The government is aiming at a surplus of 0.5 per cent for 2018 and 2019, leading to Malta's debt burden falling to 50.8 per cent of GDP.

GDP is expected to grow by 5.6 per cent in real terms next year (7.6 per cent nominally) with unemployment continuing to decline to 4.2 per cent. Investment is expected to grow by 7.8 per cent, with inflation stabilising at 1.5 per cent.