Luxembourg State Posts €104m Mid-Year Deficit as Revenue Continues to Grow

On Monday 13 July 2026, Luxembourg's Minister of Finance, Gilles Roth, presented the State's financial situation as of 30 June 2026 to members of the finance and budget execution committees of the Chamber of Deputies (Luxembourg's parliament).

In the first half of 2026, central government revenues reached €16.2 billion, according to ESA 2010 European accounting rules. This represents an increase of 9% compared with the same period in 2025.

Luxembourg Inland Revenue (ACD) collected nearly €8 billion by 30 June 2026, an increase of €507.5 million (+6.8%) year-on-year. Luxembourg's Ministry of Finance attributed this growth primarily to corporate income tax, which rose by €203.7 million (+10.1%) to €2.2 billion. Personal income tax revenue increased by 8%, while revenue from withholding tax on wages and salaries rose by 5.8%, supported in particular by wage indexation.

The Registration Duties, Estates and VAT Authority (AED) recorded approximately €4.5 billion in revenue, up €841 million (+22.8%) compared with the first half of 2025. VAT receipts increased by €317.2 million (+11.5%) to €3.1 billion, while subscription tax revenue reached €721.1 million, representing growth of 7.7%. Inheritance tax revenue also rose significantly.

The Customs and Excise Agency (ADA) collected €1.2 billion, remaining broadly stable at 0.5% below the level recorded during the same period in 2025.

On the expenditure side, central government spending rose to €16.3 billion under ESA 2010 rules, an increase of €1.334 billion (+8.9%) compared with the first half of 2025. The main increases concerned public investment (+€441 million), current transfers, particularly to social security and local authorities (+€394 million), and staff remuneration (+€243 million).

As a result, the central government recorded a deficit of €104 million at the end of the first half of 2026, representing a slight improvement compared with the same period in 2025.

Luxembourg's public debt stood at €26.5 billion as of 30 June 2026, equivalent to 28.3% of gross domestic product (GDP). The Finance Ministry described this level as moderate by international standards. 

Commenting on the figures, Minister Roth stated: "Our public finances are sound. State revenue has shown robust growth at the end of the first half of the year. Our economy is resilient, particularly the financial sector. Despite this favourable situation, we must remain cautious and closely monitor global uncertainties." He added: "We must continue to manage public finances responsibly in order to preserve our ability to strengthen purchasing power and social cohesion, while investing sustainably in competitiveness, innovation, growth and citizens' quality of life. I remain confident that we will achieve this."