Fiscal and budget performance in 2016: MONACO’S BUDGET HAS INCREASED BY 2.1%
The Principality has published its budget for 2016, showing a 2.1% increase compared to the same period last year. As of 30 April 2016, the budget amounted to €352 million, €7 million higher than last April, and €8 million higher than forecasts. The money paid into the Monegasque treasury this year from taxpayers totalled €264 million, while in April 2015, it was only €250 million. The Government of Monaco stated an overall gain of 5.5% from tax revenue.
Net income from VAT, income tax, and property acquisitions totalled €244.5 million, which is €14 million higher than last April. This increase is primarily due to an increased VAT-taxed income (€8.5 million) and an increased property acquisition tax (€6.3 million).
The profit on the administrative services in the Principality has increased by 37.6%, or €2.8 million. However, there has been a decrease of €9.6 million in state income, mainly due to a date change in dividend payment from February to May for a partially state-owned Monegasque company.
The budget of the Principality has increased, but so has its costs. In April they totalled €338 million, which is 4.8% higher than in 2015. An additional €7.4 million was spent on operating costs compared to the same period last year. These expenditures can be explained by a shift in benefit payments, remaining within the approved budget. The change in individual benefit payment dates also increased the government’s costs by 7.8%.
As for equipment and investment costs, they remain stable, having decreased by €2 million due to changes in payment deadlines on major construction projects for the current year.
As a result, the interim profit growth in the Principality for 2016 has been €14 million, which is €8.5 million less than last year. However, this downward trend is quite cyclical in nature and is not indicative of the trend for the current year.