“Despite the first encouraging signs at the start of the year, the public finances situation as of 31 January 2021 does not yet show a definitive trend, especially in an economic context which remains marked by an unprecedented health crisis,” said finance minister Pierre Gramegna (DP) of the result.

Revenue overall increased 2.8% in January 2021 compared to the year before, however customs and excise tax revenue dropped by 22.4%, as travel restrictions and remote working but also higher prices and the CO2 tax weigh on fuel sales.

State spending decreased by 3.4% in January 2021 compared to last year, amounting to €1.9bn.

While the state’s budget wasn’t balanced, the deficit at the end of January (-€152m) was smaller than that the same time in 2020 (-€270m).

“If it is too early to draw conclusions based on the figures observed in January, I am confident that the 2021 financial year will be better than that of 2020 and that public finances will move in the right direction,” Gramegna said.