Despite an expected deficit of approximately €350 million by the end of the 2022 budget year, the central government reported revenue of €6.2 billion for Q1 2023, representing a 2.3% year-on-year increase and aligning with the 2023 budget.
In 2022, 17,000 new jobs were created in Luxembourg, contributing to an increase in tax revenue for the government. Additionally, income taxes rose thanks to the successive wage indexations.
However, spending increased by 18.5% year-over-year to €6.3 billion due to a combination of factors, including financial aids for households and businesses worth €750 million, wage indexations, and the hiring of additional staff. Public investments also increased.
The government debt currently amounts to €22 billion, which represents just over 27% of Luxembourg’s GDP, slightly below the government coalition’s 30% threshold. However, a loan repayment is scheduled for July, which is expected to reduce the public debt to approximately 24% of GDP.
Overall, the Minister expressed satisfaction with the figures and the positive impact on the country’s economic performance.
