Affaires économiques
Opinion of the Chamber of Commerce on the Government draft budget - Uncertainties, deficits, resilience, recovery
On 14 October, the Government presented its 2021 draft budget, accompanied by a multi-year draft budget, in a peculiar environment, to say the least, with expenditures exploding as a result of aid measures and sharply declining revenues. Central government spending in 2020 is set to exceed the amounts budgeted last year by EUR 2 billion, while public revenue is meant to fall by some EUR 2.5 billion in 2020, compared to the amounts in the 2020 draft budget, against the backdrop of a 6% decline in real GDP in 2020. The result is a central government deficit that could exceed EUR 5 billion in 2020. Even with a mechanical economic rebound in 2021, this deficit is expected to remain high, at EUR 2.5 billion in 2021. The public debt, for its part, would be 27.4% of the GDP in 2020 and could reach 29.4% of the GDP the following year. This w ould surpass what is considered the ‘ government norm’ of 30% as early as 2022
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Livestream - La Chambre de Commerce présente son avis sur le projet de budget de l'Etat from Luxembourg Chamber of Commerce on Vimeo.
AVIS BUDGETAIRE 2021 from Luxembourg Chamber of Commerce on Vimeo.