Luxembourg's 2024 revenues rise by almost 13 per cent
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On 28 January 2025, Luxembourg Finance Minister Gilles Roth presented the state's financial results for 2024. The main indicators show a significant growth in revenues, an increase in social spending and an improvement in the budget balance.
According to the European System of National Accounts (SEC2010), Luxembourg's central government revenues totalled €28.4bn, up 12.9% from 2023.
The most significant income categories:
- Receipts from corporate income tax rose by 34.1% (+€853.3 million).
- Receipts from personal income and payroll taxes increased by 8.9% (+€536.6 million).
- Capital gains tax receipts rose by 32.8% (+€261.8 million).
- Interest income tax receipts increased by 188.9% (+€107.5 million).
Registration and VAT administration also showed an 11.4 per cent increase in revenues (+€798.4 million), especially thanks to a 14.5 per cent increase in VAT revenues (€739 million).
Total government spending increased by 9 per cent, driven by increased social support and strategic investments:
- Social benefits increased by 14.6 per cent (€377.6 million).
- Investments in the country's infrastructure and future grew by 8% (+242.9 million euros).
The state's financial situation has strengthened: preliminary data show a central budget surplus of EUR 317 million, EUR 948 million better than in 2023. However, a moderate deficit of €300 million is expected for the year, taking into account the remaining unprocessed expenditure.
The Finance Minister emphasised that despite the difficult geopolitical and economic situation, the current fiscal position provides opportunities to continue economic stimulus policies and meet future challenges.
