The State of Luxembourg’s Finances: A Detailed Overview by Minister of Finance Gilles Roth
Minister of Finance Gilles Roth recently presented the state’s financial status as of 30 September to the relevant parliamentary committee, laying the groundwork for the upcoming 2025 state budget. Let’s delve into the key points discussed during this presentation:
Measures to Stimulate Property Sales
– Minister Roth announced that the government will introduce additional measures to boost the sale of properties under construction or sold off-plan (VEFA) alongside the 2025 state budget.
– While existing measures have led to an increase in sales of existing homes compared to 2023, the same progress has not been seen in the VEFA market.
– Roth hinted at forthcoming measures to stimulate the VEFA sector, with existing provisional measures set to remain in effect until year-end.
Excise Duties and Environmental Policies
– Minister Roth suggested that announcements regarding excise duties could be expected soon, ruling out any immediate reductions in cigarette and petrol prices.
– He reaffirmed the government’s commitment to the National Environment and Climate Plan (PNEC) established by the previous administration.
– Acknowledging concerns raised by the Chamber of Deputies on tobacco and health policy, Roth emphasized the government’s responsiveness to these issues.
State Finances Snapshot as of 30 September 2024
Revenues
– State revenues saw a significant 14% increase compared to 2023, driven primarily by taxes paid by Cargolux from the pandemic years, which proved economically lucrative for the company.
Expenditures
– Expenditures rose by 7% in the first nine months of the year compared to the previous year.
– Minister Roth highlighted a positive “scissor effect,” indicating a potential decrease in the deficit relative to the budget, though challenges remain on the horizon.
In conclusion, Minister Roth’s presentation sheds light on the state’s financial health and the government’s proactive measures to address key economic issues. By staying committed to fiscal responsibility, stimulating key sectors like real estate, and balancing environmental concerns with economic realities, Luxembourg aims to navigate the challenges ahead with resilience and foresight.
This comprehensive overview underscores the importance of sound financial management and strategic planning in safeguarding the nation’s economic stability and fostering sustainable growth for the future.