As of 30 June, the central state had €12,9 billion in revenue, a year-over-year increase of 5.4%. In the first semester of 2023, the government’s three tax administrations brought in a combined total of €10.9 billion.
In that same period, spending amounted to little over €13 billion, a year-over-year increase of €2 billion. According to a statement from the Ministry, this can be explained by the number of aids for households and businesses that were implemented in the context of the ‘energy round-table’ and the ‘solidarity packs’ one and two.
The costs of the third pack will only be included in future projections as it has not yet come into force.
The Ministry statement also notes that at the “end of the first half of the year, revenue and expenditure taken together will show a deficit of €228 million”.
Minister Backes explained that she is “delighted” that people benefit from the numerous aids in the midst of rising inflation and the war in Ukraine. She further noted that Luxembourg has had the “lowest inflation rate in Europe”, which she sees as a clear proof that the taken measures have borne fruit.
“I will therefore continue pursuing a far-sighted and responsible fiscal policy, ensuring that the evolution of public spending is kept under control at all times”, the Minister concluded in the statement.
The state debt should be €22.2 billion, 27.1% of GDP, at the end of June. However, the government reimbursed €2 billion on 10 July, which means the debt will actually fall to €20.2 billion, or 24.7% of GDP.
