Luxembourg's finances may face a one and a half billion euro deficit

According to the Ministry of Economy, in August the country’s finances saw a billion-dollar surplus. But forecasts for the end of the year are far from rosy. Luxembourg expects a budget deficit of a billion or even one and a half billion euros.

In the context of the crisis, Luxembourg has postponed the next salary indexation until April 2023. Instead, energy tax credit is used. That’s payments that help the residents cover their energy bills. And the future financial deficit is explained precisely by the state’s need to provide these energy loans.

The ministry also noted that the current budget work may lead to a deficit not only in 2022, but also some years after it.