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Luxembourg’s public debt shrank slightly as the end of February 2021, according to Pierre Gramegna, the finance minister. Library picture: Pierre Gramegna delivers a budget speech to parliament, 5 March 2019. Photo credit: Chambre des Députés 

This was due to a 3.8% increase in state revenues over this period, while expenditure rose by 1.6%. The latter figure is particularly notable given the amount of state support the economy is receiving at the moment, and that it is compared to before the pandemic started to be felt in Luxembourg.

Commenting on the figures, finance minister Pierre Gramegna (DP) said on 22 March that the government's efforts to support the economy are reflected in a 12.5% increase in public spending to €215m.

Gramegna added that the figures showed that customs and excise revenue fell 17.9% to €253m largely due to reduced demand for petrol and diesel due to the decrease in economic activity during the pandemic, and the introduction of a CO2 tax having reduced the gap in pump prices with neighbouring countries.