Finance Minister happy with 2014 budget results

(CS/mig) Finance Minister Pierre Gramegna on Friday presented an overview of the 2014 budget results to a parliamentary commission, showing himself satisfied with the overall savings achieved.

The increase in central government spending was kept below 3.5 percent, which was one of coalition's major goals for the 2014 budget. “This is one of the best results of the last ten years, when the annual increase was on average 8 percent,” Gramegna commented.

The target of 8.5 percent savings in state operating costs, equivalent to 50 million euros, however, was not met, the Finance Minister said, but reached only 6.3 percent.

On the other hand, salary costs for civil servants were 1.8 percent below budget in 2014. Expenditure in this area increased by 4.5 percent, around 1 percent less than the year before, Gramegna explained.

Thanks in part to the savings measures, Gramegna announced a 311 million euro surplus. The state deficit, however, continued at just below 600 million euros in 2014. “The problems have not been solved,” Gramegna said, pointing towards the future package of 258 savings measures aimed at balancing the budget by 2018.

Opposition leader Claude Wiseler (CSV) commented that the increase in revenue was to be largely attributed to general economic recovery internationally, with Luxembourg benefitting as a result.

He also commented that some of the measures introduced last year had been softened in the 2015 budget and warned of a return to former spending habits.

With not all of the goals achieved, Wiseler spoke of “one-shot” measures for 2014. “If we want to keep finances under control the savings measures need to be continued over the coming years,” he said.

At the same time he commented that government budget predictions were exaggerated.

Gramegna on the other hand said that revenue had developed as expected over the first quarter of 2015, seeing no reason to change the basis of the budget calculations.