Gilles Roth, Luxembourg's Minister of Finance; Credit: © SIP / Claude Piscitelli

On Tuesday 6 May 2025, Luxembourg's Minister of Finance, Gilles Roth, presented the State's financial situation as of 31 March 2025 to members of the finance and budget implementation committees of the Chamber of Deputies (Luxembourg's parliament).

Central government revenues in the first quarter of 2025 amounted to €7.6 billion, according to the ESA 2010 European accounting rules. Luxembourg's Ministry of Finance attributed this to "continued positive momentum" and a year-on-year increase of over €723 million (or 10.6%).

Luxembourg Inland Revenue (ACD) generated total revenues of €4.3 billion as of 31 March 2025, representing a 14.0% increase year-on-year. The most notable increase is seen in corporate income tax (+€521 million). Revenue from withholding tax on wages and salaries stood at €1.7 billion - almost identical to that recorded for the same period in 2024, despite the additional adjustment to the personal income tax scale effective as of 1 January 2025.

Revenues collected by the Registration Duties, Estates and VAT Authority (AED) totalled €1.9 billion (up €50 million or 2.7% compared to  31 March 2024). While VAT and subscription tax revenues increased by €40 million and €28 million respectively, registration fees remained lower due to housing support measures, particularly the halving of the applicable tax base, according to the ministry.

The Customs and Excise Agency (ADA) recorded revenues of €569 million, representing an increase of 25.1% over one year.

As of 31 March 2025, central government expenditure had increased by €788 million (or 12.2%) year-on-year to reach €7.2 billion, according to the ESA 2010. This relatively high spending during the first three months of 2025 is partly explained by the application of the provisional budget measures, which had curbed spending at the beginning of 2024.

More than a quarter (27%) of this increase comes from direct and indirect investments, while subsidies for public transport, housing, the electricity price cap and others, as well as transfers (particularly to municipalities, social security and military spending) account for approximately 44% of this increase.

At the end of the first quarter of 2025, the central government balance showed a surplus of €337 million.

Minister Roth commented: "We remain committed to supporting this positive revenue dynamic, which I welcome. This reflects in particular the good performance of our financial sector and confirms our political action in favour of a strong social state, solid social cohesion and sustainable and inclusive growth."