Monaco's 2025 Preliminary Budget Proposes Increased Spending, Key Investments

The Monegasque government has recently presented its preliminary budget for 2025, which forecasts revenues of approximately 2.098 billion euros against expenditures of 2.187 billion euros. Set for review by the National Council at the end of December, the budget anticipates a deficit of 88.6 million euros, a shift from the 2024 budget which projected a substantial surplus. This fiscal outlook includes a 2.6 percent increase in revenue and a more substantial 6.1 percent hike in spending compared to the previous year. A notable decline in VAT collections, a drop of 77 million euros, primarily drives the reduced revenue expectations.

Operational costs for 2025 are expected to rise by six percent, with personnel expenses—accounting for over half of the budget—increasing by 4.3 percent. While some sectors like the Scientific Centre of Monaco see funding cuts due to restructuring, others, including the town hall, will receive a 4.9 percent increase in funds. Strategic cuts and reallocations are evident, with reductions in subsidies to TV Monaco and decreased funding for economic development measures, although there are incremental increases in support for business and economic studies.

Investment in public infrastructure and environmental sustainability remains a priority, with significant funds earmarked for the development of health and social facilities, and strategic projects such as the electrification of the Rainier III quay and the Larvotto area development. The budget also allocates 20 million euros towards the Waste Treatment and Recovery Center, indicating a strong continued commitment to environmental initiatives. As the National Council prepares for the budget debate in December, these allocations underscore the government's focus on maintaining robust infrastructure and advancing sustainable development in Monaco.