The budget deficit for 2023 will be 2.8 billion euros
Yuriko Baсkes, Luxembourg’s Minister of Finance, has presented the draft for the next year’s budget. Today, on October 12, the Parliament got acquainted with the document first-hand.
As expected, social security will be the main source of expenditure. Approximately 47% of all the finances next year will go to grants, subsidies, benefits in the social sphere. Incomplete families will be able to count on tax benefits.
The second priority is affordable housing. The draft budget assumes that the Ministry of Housing’s expenditures will increase to 282 million euros. At the same time, the budget for the Housing Construction Fund will rise to 192 million euros.
Public investment will increase to 4.6% of GDP, which is about 3.8 billion euros. Of this amount, 1.2 billion is a package of environment-focused investments. Environmental protection will also manifest in another form. From 2023, a reduced VAT rate of 3% will apply for solar panels. Biofuels and other bioliquids that meet sustainability criteria will be fully exempt from the CO2 tax.
