Luxembourg’s accounts showed higher revenues than expenditure for the first quarter of this year, indicating the rigour exerted by the government over public finances according to Finance Minister Pierre Gramegna during his report to the Cofibu / Comexbu of the Chamber of Deputies today. 

At central government level, there is a favourable trend in the evolution of operating costs, intermediate consumption, which remains 2.9% below the level of the same period of the previous year. Direct investment remained virtually unchanged from the same period of 2016, which was already a record year. The ministry said it continues to implement an ambitious investment policy aimed at modernising infrastructure and ensuring quality growth in the years to come.

VAT revenues on e-commerce continue to fall, now 68% lower than the previous year. In this context, it should be recalled that Luxembourg's share increased from 30% to 15% on 1 January 2017. In contrast, the subscription tax rose by 2.8%, reflecting favourable developments at the evolution of the financial centre.

Pierre Gramegna said, "After a marked improvement in the state's financial situation in 2016, the trends observed in the first quarter of 2017 suggest that this positive trend will continue for the current year. On the basis of current figures, implementation of the 2017 budget is slightly more positive than projected. Revenue is rising faster than spending, which is a sign of responsible fiscal policy. However, rigour remains in order to maintain this positive trend over the coming months."