Luxembourg budget watchdog says government short on explanations

Luxembourg’s National Council of Public Finances (CNFP) said the government has not given enough information about the 2018 budget which is projected to run a €945.3 million deficit.

The CNFP noted downward revisions for Luxembourg’s economic growth by Statec. The national statistics office estimates expansion of 2.7% this year compared with an earlier 4.4% forecast. The outlook for 2018 is for 3.7% growth, down from an expected 5.2% previously.

It’s “difficult to understand the impact of the significant downward revision for the real growth trend in government revenue. The CNFP recommends budget authorities to quantify this impact in the future,” the body said in a statement. The CNFP “continues to recommend the government pursues sufficiently ambitions budgetary targets.”

Finance Minister Pierre Gramegna presented the budget to parliament on October 11. It foresees €15 billion in spending and €14.1 billion in revenues.

The CNFP also said the government had not given information about how its proposed policies are likely to affect “long-term sustainability.”