Monaco 2017 budget plans
With a recorded surplus of 35.8 million euros, the closing results of the 2016 budget make it a year in the clear. And the trend is set to continue in 2017…
He only had “good news” recently, in his appointment with the press. Jean Castellini, the government advisor to the Minister of Finance and the Economy, unveiled the results of the 2016 fiscal year. A year marked as a “record”.
“After the years 2009, 2010 and 2011 that were complicated, we are finishing our fifth consecutive year with a budgetary surplus,” says Jean Castellini. This year, the surplus is 35.8 million euros, which is 6 million more than in 2015. A score refined at the end of March 31 of the past fiscal year.
Same in 2017?
“Our revenues outpaced our expenses, which were constrained to equipment and investments” in figures, the state collected 1,251 billion in revenues and spent 1,215 in 2016. Out of the expenses, 468 million was invested in equipment and 241 million in public projects.
Fiscal revenues saw an increase of 3,6% from 2015, resulting in 935 million euros. “Satisfying numbers” says Jean Castellini, “the Grimaldi Forum achieved a record year in 2016, with the highest revenues ever achieved, 57 million euros earned for the country”.
For national finances, the first trimester of 2017 seems so far to be moving in the same direction. Last December, the national council voted for a proposed budget with a provisional excess of 6,3 million euros. It is marked in particular by significant investments (32 million for the west entry project, 36 million for the Engelin, 32 million for the future school) which raise provisional expenses by 5,8%. Paralleled with revenues to come, which are expected to increase.
“We continue on the displayed trends. The tax revenues at the end of March 2017 are 6% above those of 2016” says the advisor, even before the tourism season has started.
In response to a journalist’s question concerning diversifying the state’s revenue lines, Jean Castellini responded by providing details for the launch of a start-up incubator in the Principality. For several weeks, the government has been working to elaborate this project, by proposing attractive conditions to young companies to encourage them to develop in the region.
“The Monegasque economy is without a doubt more resilient than others. We managed to avoid the major effects of the crises, but we have to think about the future of Monaco” says Jean Castellini.
It is with this in mind that the start-up incubator is planned to start in Autumn. Fabrice Marquet was chosen out of 120 candidates to make this project a reality. The government plans to develop it with Monaco Telecom and its majority shareholder, the “serial entrepreneur” Xavier Niel as humorously described by Jean Castellini.
The incubator is planned to be used not only for telecom companies but also as a terrain for innovative businesses in the fields of finance, sustainable development and health. “These businesses could complete the Monegasque landscape and position the country in the domain of innovation”.
Martin Peronnet the general manager of Monaco Telecom operations said that the new incubator will be a tool of choice to accompany new businesses with good ideas also reminding us that Xavier Niel is about to launch the largest start-up incubator in France (1000 businesses, 3000 positions).
The one in Monaco will open its doors in Autumn “it will be capable of hosting 20 start-ups. We hope to see 6 to 10 of them here before the end of the year. The search for candidates hasn’t started yet”.