On 23 January 2024, Minister of Finance Gilles Roth presented the State's financial position at 31 December 2023 to the members of the Finance Committee and the Committee for Monitoring Budget Implementation.
A deficit of 630 million euros at 31 December 2023
The Central Administration deficit provisionally amounts to 630 million euros at 31 December 2023. Further expenditure will be recorded during the so-called supplementary period, which runs until April 2024, so that the deficit for the full year 2023 will be even higher.
Revenue slightly ahead of budget estimate
Revenue at central government level is slightly above the budget estimate (102.3% of the voted budget). However, there are disparities depending on the type of revenue.
Difficult situation in the construction sector
In terms of revenues collected by the Registration Duties, Estates and VAT Authority, forecasts have been confirmed.
Registration fees show a correction of around -252.9 million euros (44.9% of the budget voted) and reflect the difficult situation in the construction sector and the significant drop in property transactions.
Lower revenues from subscription tax and VAT
The situation on the financial markets and interest rates explain the downward trend in revenues from subscription tax (-€81.8 million). VAT receipts were only 94.9% of the approved budget.
Good level of revenue from companies and individuals
Revenues from companies are doing well. Corporate income tax and wealth tax are up by €313.3 million and €222.3 million respectively compared with 2022. These revenues represent 122.1% and 130.7% of the voted budget.
Revenues from personal income tax and tax on wages and salaries amount to 119.3% and 98.9% of the budget respectively.
Minister of Finance Gilles Roth commented: "The significant drop in revenue from property transactions clearly shows the need to act consistently, as set out in the government's programme. Courageous decisions now need to be taken to revive the house-building sector and thus avoid a significant increase in business failures and unemployment. As for purchasing power, the reduction in the tax burden for households on 1 January 2024 with the adjustment of the tax scale to 4 indexed bands is fair and will help to support the economic recovery.
Press release by the Ministry of Finance