Public finances: the Luxembourg state has spent more than expected

“Solid finances despite the uncertainties,” assured Minister Gilles Roth to deputies, when taking stock of state funds on Monday with figures updated for the first half of 2025. It only appears from January to June, revenues and expenses increased, and the state spent a small 111 million euros more than he conceded, while he was in excess of 487 million The first half of 2024.

Indeed, as of June 30, central state spending amounted to 14.9 billion euros, an increase of 965 million (+6.9%) compared to the first half of last year. The ministry’s press release indicates that the expenses that have progressed the most concern education, social security and various investments. The state has paid its employees a total of 3.55 billion euros in six months (+7% compared to January-June 2024).

The revenues, on the other hand, increased slower than expenses, with an increase of 2.5% or 367 million euros more than in the first half of 2024. In total, the State collected, from January to June, 14.8 billion euros. More than half comes from the administration of direct contributions, which brought back 7.5 billion euros (+3.1%), in particular thanks to community income tax (+14.8%, or 260.3 million more). Salaries tax increases very slightly by 1.5 million euros.

Revenues from registration, domains and VAT is retreating (-42.2 million or -1.1%). In detail, the State collected 21.2 million euros in VAT less and 38.8 million (-35.3%!) As registration fees, while the subscription tax increased by 37.6 million. Customs and excisees collected 102 million more than 2024 (+9.5%) for a total in the common pot of 1.2 billion.

For Minister Gilles Roth, quoted in the press release, “we maintain the course. Our country is doing well. Our economy and our financial center too. We continue to invest massively in our future and that of our children, and also in our social cohesion and our citizens ”. In the end, the minister “remains cautiously optimistic for the future”.