Minister of Finance Pierre Gramegna submitted the budget project to the Chamber on Monday morning, which covered three priorities in particular for the next year: climate protection, high investments, and concrete measures to improve everyday life for citizens. The project allowed for a number of measures with a focus on climate, such as free public transport from 1 March 2020. Further initiatives in this domain will also be supported, as well as a number of ambitious investments totalling around 500 million euros.
The 2020 budget also envisioned record investments in the country's infrastructure and quality of life, to meet a potential future deficit. Investments will climb by 12% compared to the previous year, attaining 2.8 million euros.
The government is set to spend 650 million euros in 2020 - a cost which derives from massive investment in environmental and climate protection, as well as other measures which citizens will see in their everyday lives, such as parental leave, which will command a budget of around 240 million euros.
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Public debt will continue to fall over the next few years and will make up less than 20% of the country's GDP in 2020. Although the minister's view of the future was largely positive, the plan has allowed for more difficult times. The crisis fund will be subjected to reforms in order to support future potential deficits.
The third priority will affect daily lives of citizens, with a number of measures to be put in place to aid societal development to become more inclusive, healthier and fairer. The 2020 budget will also focus on the development of the 5G network in Luxembourg.
While 2019's budget surpassed 19 billion euros, central government spending for 2020 will be around 20.9 billion euros, an increase of 6.5%. Revenue figures are projected to be 20.3 billion, an increase of 3.7%.
Following Monday's presentation, the budget will be subject to debate by the finance and budget commissions. MPs will speak to representatives from the affected sectors over the course of the next week, including the director of the Inspectorate General of Finances, and the director of Statec. The Chamber will vote on the budget before the festive holidays, before it becomes law on 1 January.
The Minister of Finance stated the government had already discussed climate protection measures such as the increase of indirect taxes on petrol and diesel. In his opinion, the most spectacular change would be the introduction of free public transport. Other measures would be introduced to encourage more environmentally friendly construction and to take a rational view in order not to favour the car.
Gramegna also appealed for patience regarding tax reform, saying the government was on the right track. An inter-ministerial group will meet over the coming weeks to prepare for the reform. However, the government had already made progress in terms of taxes, particularly with the increase in minimum wage, which was partially enabled by a tax reduction.
More concrete plans for housing will also follow over the coming months, with further measures to be announced next year, said the minister. Gramegna also emphasised the acquisition committee, for which he has assumed responsibility, which seeks to mobilise the land owned by the state. Base tax rates will also be reformed, in special measures to help bring more land and housing on to the market.
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CSV leader Martine Hansen said figures and money did not constitute a vision, and that climate protection had once again been mentioned without any concrete plans or any new information.
Gast Gibéryen of the ADR party stated that the government were again focusing on record levels of growth, but he did not think this brand of politics would fix the ongoing housing and mobility issues affecting the country.
David Wagener of déi Lénk said there were insufficient details regarding the topics of climate protection and housing, which should pose the biggest challenges to the country.
Pirate Party MP Marc Goergen said the presentation was a pleasing show, with pleasing figures, but that the figures would need to be subjected to analysis.
