The €987m deficit in 2017 will represent around 1.7% of the Grand Duchy’s GDP. For comparison, deficits next year are expected to be more than 2.5% in every other EU country except Germany, Bloomberg News forecast earlier this year. In 2015, the figure was 2.4% across the entire EU28, reported Eurostat.
Social security represents about 22% of Luxembourg’s 2017 spending plans, and education around 15%. The budget includes notable increases in family aid and parental leave, as well as €2.3bn of investment in infrastructure upgrades, “an historic record” said the finance ministry.
The government also aims to create more than 1,000 public sector jobs, including 544 new educators and 100 new police officers.
Income and capital gains taxes will account for approximately 57% of revenue.