The Luxembourg Ministry of Finance has confirmed the favourable situation in the public finance sector for the second quarter of 2017.

On Thursday 20 July 2017, Minister of Finance Pierre Gramegna presented the budgetary situation of the state for the second quarter of 2017 at the Cofibu / Comexbu of the Chamber of Deputies. The results proved favourable.

As of 30 June 2017, tax revenue, that is receipts from the Administration of Direct Contributions, Registry and Domain Administration, and the Customs and Excise Administration, amounted to 50.3% of the amount budgeted for the year, underscoring the reliability of the Department of Finance’s prediction. With a growth of 1.6% compared to the same period in 2016, tax revenues reflect the positive development of the Luxembourg economy. As announced, VAT revenues on e-commerce continue to fall, reaching a level of 60% lower than the previous year.

Whilst current government expenditure is at 47% of the budgeted amount, direct investment grew by 173.8 million, a positive change of 21.7%, compared with the same period of 2016. The government continues to pursue its ambitious investment policy, aimed in particular at developing efficient and sustainable infrastructures to ensure qualitative growth in the years to come.

Pierre Gramegna commented that: "The evolution of revenue in the first half of 2017 is in perfect accordance with forecasts. Given that expenditure is under control, it is reasonable to anticipate for the current year a reduction in the Central Government deficit well below the € -1 billion level under the Stability and Growth Program (SGP)."