Taxes and social insurance contributions went from 39.6% in 2020 to 39.9% of GDP in Luxembourg last year. Photo: Towfiqu Barbhuiya/Unsplash

Taxes and social insurance contributions went from 39.6% in 2020 to 39.9% of GDP in Luxembourg last year. Photo: Towfiqu Barbhuiya/Unsplash

The proportion of the economy dedicated to public spending rose slightly in Luxembourg and across the EU last year.

Net revenue from taxes and social contributions in Luxembourg increased from 39.6% of GDP in 2020 to 39.9% of GDP in 2021.

“The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), stood at 41.7% in the EU in 2021, an increase compared with 2020 (41.1%),” Eurostat on 31 October 2022.

Within the EU, the highest ratios were recorded in Denmark (49% of GDP), France (47%) and Belgium (46%), while the lowest portions were registered in Bulgaria (31%), Romania (27%) and Ireland (22%).

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