RTL 5minutes – In Luxembourg: 14.4 billion in revenue at the end of August, public finances are improving!
Two weeks before the presentation of the 2022 budget, the Minister of Finance, Pierre Gramegna took stock of the state’s financial situation as of August 31, 2021.
The total revenue collected by the central administration, according to the European accounting system ESA 2010, amounted to 14.4 billion euros, or + 20.2% compared to the end of August 2020. This significant rebound is however, also to be considered in relation to the particular context of last year marked by the pandemic and the health restrictions that accompanied it.
Pierre Gramegna is delighted that “At the end of August, Luxembourg’s public finances were at a much better level and I am delighted to see that the figures are starting to come in as the country is well on the way to normalization. The financial situation of the State has returned to calmer waters and I welcome this two weeks before the presentation of the draft budget for 2022. The positive development of recent months was confirmed during the summer and allows us to Approach the next fiscal year with more serenity and confidence“.
The expenditure of the central administration totaled nearly 14.5 billion euros. In comparison with the previous financial year, expenditure thus fell by -2.3%, which is explained by the now less use of aid put in place in the context of the economic recovery. Compared to 2019, however, public expenditure increased by + 15%, which testifies to the ambitious investment policy carried out by the government in order to prepare the country for the challenges of the future.
LOWER PUBLIC DEBT IN THE EURO ZONE
The growth observed in public revenue and the decrease in public spending overall have a positive jaws effect which leads to a considerable improvement in the central administration balance which goes from -2.9 billion euros as of August 31, 2020. at -124 million euros as of August 31, 2021. Significant expenditure will still have to be made in the coming months, including the disbursement of funds made available to the tune of 100 million euros to deal with the consequences of the floods in July latest. But it is already possible to say that the deficit will be lower than the demands of last April in the stability and growth program.
As for the public debt, it remained stable on August 31, 2021 at 17.9 billion euros, which corresponds to a ratio of 25.9% of GDP. Luxembourg’s public debt thus continues to be at a level well below the 30% of GDP mark limited to the government program, and remains among the lowest in the euro zone.