The Luxembourg government is roughly on track to meet its 2025 budget projections.
At the mid-year mark, the state had spent €14.9 billion out of €24.2 billion approved by parliament for the full year, according to figures released by the finance ministry on Monday.
For comparison, central government spending was €14 billion in the first six months of 2024 and €13 billion in the first half of 2023.
The state took in €14.8 billion in total revenues in the first half of the year, the finance ministry stated. That was 49.6% of the amount forecast by Gilles Roth, the finance minister (CSV), last autumn. The state collected a total of €14.5 billion during the first six months of 2024.
That means Luxembourg was running a €111 million budget deficit as of 30 June 2025, the ministry said. Under the budget forecasts the deficit is expected to hit €1.3 billion at the end of the year – still well below the EU ceiling of 3% of national GDP. The finance ministry on Monday did not say whether the government would post a smaller deficit than originally forecast.
The government recorded a budget surplus of €487 million in the first half of 2024 after running a deficit of €133 million in the first six months of 2023.
The finance ministry said that during the first six months of 2025, “the most notable [spending] increases observed were in education, social security and direct and indirect investments.”
Roth stated in a press release that “our finances remain strong despite the uncertainties,” the country’s economy and financial sector are “doing well” and the state continues “to invest massively in our future and that of our children.”
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The cabinet has pledged to increase defence and security spending as Nato members agreed a new 3.5% of annual GDP target – although there is a carveout for Luxembourg. The government has said it will find the estimated €400 million in additional spending without raising taxes or cutting social spending to meet a 2% of gross national income target at the end of this year.