Breaking News: Finance Minister Presents 2025 State Budget

Deficit and Public Debt

• The projected deficit for 2025 is €563 million, a substantial decrease from the €987 million forecast in the 2024 budget.
• Finance Minister Gilles Roth highlighted a shift towards responsible and sustainable financial policies, with revenue growth surpassing expenditure growth.
• Despite an expected deficit of €1.29 billion in 2025, public debt is set to stabilize at 27.5% of GDP.
  

  Excises
  

• Excise duties on cigarettes will increase by 5.5% in 2025, contributing additional revenue to the state.
• Revenue growth has consistently outpaced expenditure growth in recent years, demonstrating ongoing fiscal improvement.
  

  Social Measures
  

• Starting January 1st, the non-qualified minimum wage will be tax-exempt, a significant social advancement.
• Tax relief for single-parent families will increase, along with a 10% rise in the cost-of-living subsidy.
• The residency requirement for the cost-of-living subsidy will decrease to three months, benefiting more individuals.
• The energy premium will triple, based on social criteria for broader access, and the tax scale will be adjusted by 2.5 index points.
  

  Housing
  

• Registration fees on home purchases will be halved from October 1st to stimulate the construction of new homes, including ‘Vefa’ homes.
• This measure applies to all properties, whether newly built or existing, for both homebuyers and investors.

  In summary, the 2025 state budget presented by Finance Minister Gilles Roth outlines a positive trajectory towards financial stability and social progress. With a focus on responsible spending, revenue growth, and targeted social measures, the budget aims to benefit a wide range of individuals and stimulate economic activity in key sectors.

  Understanding the implications of this budget is crucial for all citizens, as it directly impacts their financial well-being and future prospects. By tracking deficit reduction, public debt stabilization, and social advancements, individuals can gauge the government’s commitment to fiscal responsibility and social welfare. The budget’s focus on housing incentives and tax relief further underscores the government’s efforts to promote economic growth and support its citizens. Overall, staying informed about budget developments and policies is essential for making informed financial decisions and planning for the future.