Luxembourg Government Balance Reaches €487m

On Monday 8 July 2024, Luxembourg's Minister of Finance, Gilles Roth, presented the financial situation of the State as of 30 June 2024 to members of the finance and budget execution committees of the Chamber of Deputies (parliament).

At the end of the second quarter of 2024, central government revenues increased by more than €1.3 billion (+€1,308.8 million or +11.6%) compared to one year earlier, to reach over €12.5 billion (€12,545.2 million).

As reported by Luxembourg's Ministry of Finance, this favourable development is primarily driven by the tax revenues recorded at the level of the Luxembourg Inland Revenue (ACD), which were up by €889.6 million (or +13.9%). Corporate income tax showed a clear increase of €475 million (+37%) and municipal business tax increased by €184.1 million (+29.5%) compared to the same period in 2023. The ministry noted a good performance also for revenue linked to withholding tax on salaries with an increase of €317.5 million (+10.4%) - despite the adaptation of the personal income tax scale by four index tranches on 1 January 2024.

Revenues collected by the Customs and Excise Agency as well as by the Registration Duties, Estates and VAT Authority (AED) increased respectively by €41.2 million (+4%) and €240.3 million (+6.9%).

The central government balance thus amounted to €487 million at the end of June 2024.

Minister Roth commented: "The mid-term budgetary development is generally positive. Public finances are moving in the right direction. We must now stay the course. With an ambitious budgetary policy that focuses on investments in social cohesion, strengthening the purchasing power of households, the ecological transition and the competitiveness of our economy."