Luxembourg's budget report: deficit of 111 million euros in the first half of the year!

Luxembourg's budget report: deficit of 111 million euros in the first half of the year!

Roth, Luxemburg - What about Luxembourg's state finances in the first half of 2025? Finance Minister Gilles Roth (CSV) today presents the current figures and has to take a mixed balance. Expenditures exceed the income of 111 million euros, at a time when the global economy moves towards a relaxation. But Roth is optimistic and refers to a total of 14.8 billion euros in income, which corresponds to an increase of 2.5 percent compared to the previous year. In the same breath, he makes it clear that the expenditure has increased to 14.9 billion euros, an increase of almost 7 percent compared to the first half of 2024. So the citizens can look forward to the long -term trends in financial policy, because there is definitely something.

A look at the details shows that the income bubbles in particular through corporate tax. These amounted to 7.5 billion euros on June 30, which corresponds to an increase of 223 million euros in the year. Nevertheless, there were also declines. The income from registration, domain and VAT in total was reduced by a total of 42.2 million euros. The low performance in these areas could trigger warning signals about the economic stability of the citizens. Nevertheless, there are bright spots: income from subscription fees rose by 37.6 million euros, but you cannot quite compensate for the decline in other taxes.

What influence do the tariffs have?

Another point that Roth leads is the income of customs and accelerated management. These were 1.2 billion euros, which is an impressive increase of 102 million euros or almost 10 percent. Tobacco tax also shows increasing tendencies and has brought in more than 120 million euros, which means that it comes to 647.5 million euros. There is also a split image for consumption taxes: income from petrol tax increased slightly, while the numbers for diesel are declining. Such fluctuations have an impact on the budgetary situation and on the daily wallet of the citizens.

A central point in planning the Luxembourg state finances is that the income is often systematically estimated. In contrast to the actual income, which is often over several hundred million euros above expectations, this could lead to a distorted view of the financial situation in the long term. The government has to start here to avoid future budget crises.

in international comparison, Luxembourg does not do badly in 2022. According to a list of Wikipedia this year achieved income of 35,795 million euros and expenditure of 35,650 million euros. Compared to many other countries such as the USA, where the deficit is at -943,649 million euros, Luxembourg shows itself in a different light.

The perspective for the future

When asked how it will go on, Roth remains optimistic. He believes that despite the preliminary deficit this year, the positive development of tax revenue on a relaxing economy indicates. However, analysts and citizens will watch the coming months closely to see whether this trend continues. The hope is that the financial fluctuations of the past few months of the past belong and Luxembourg can return to a stable economic course that benefits both the state and the citizens. For more information about state finances, it is worth taking a look at the statistics pages of Eurostat