During the joint meeting between the Commission des finances et du budget - Cofibu (Finance and Budget Committee) and the Commission du contrôle de l’exécution budgétaire - Comexbu (Budget Implementation Control Committee) last week, the Minister of Finance Pierre Gramegna presented the state's budget situation in the 4th quarter of 2017. This shows that the central government balance amounts to +€364.1 million. Between December 2016 and December 2017, the total revenue increased by +€894 million, in other words by +5.7%. This result follows the trend in previous quarters, in other words a more favourable trend than forecasts due to a healthy economic climate.
An ambitious investment policy
In terms of spending, operating expenses remain under control, with a reported drop of -8.3 million compared to the same quarter of the 2016 financial year. In total, spending increased by +€678 million between December 2016 and December 2017, which represents an increase of +4.3%. This result is in line with the government's ambitious policy regarding infrastructure investments. However, the Minister of Finance was anxious to point out that spending is under control, and that the central government's deficit is gradually declining, remaining well below previous forecasts.
A more favourable development than expected
While total spending reached €13,396.5 million, in other words 95% of the 2017 voted budget, revenue accumulated amounted to €13,754.8 million, in other words 104% of this same budget. Revenue thus continues to increase more rapidly than spending, which is the sign of a sustainable budget policy. Taking into account revenue from loans, the central government would show a surplus of +€1,987.5 million.
(Source: Press release from the Ministry of Finance)