Pierre Gramegna presents promising prospects for public finance

Luxembourg Finance Minister Pierre Gramegna today presented the state of public finances in the first half of 2018.

At a joint meeting of the Finance and Budget Committee (Cofibu) and the Committee on Budget Execution Control (Comexbu) of the Chamber of Deputies, Pierre Gramegna revealed the extent of the recovery of Luxembourg’s public finances in recent years.

In fact, according to European accounting standards SEC 2010, the balance of the Central Administration in the first half of 2018 amounted to -€88 million, which corresponds to an improvement of €69 million compared to the same period in 2017. Indeed, this is the best mid-year result in Luxembourg since 2011 and show the extent of the gradual growth of the country’s public finances.

In general, revenues were in line with the budget estimates, while spending remained slightly below budget. The figures for the first half of 2018 also showed that revenue growth (7.2%) exceeded expenditure growth (6.2%) – a sign of a responsible and sustainable fiscal policy. It is therefore to be expected that the central government deficit will be well below the level initially set in the 2018 budget.

Pierre Gramegna commented: “The accounts of the state are now very close to balance. Despite the tax reform and the historically high level of investment, the central government deficit has been continuously reduced. On this basis, the next government will be able to pursue a determined policy of commitment to best prepare the country for the challenges of the future and continue to improve the quality of life of citizens. “