16/12/2024 09:17
This afternoon marks the start of a three-day debate in the House of Representatives on the 2025 state budget, culminating in a vote by the Plenary Session on Wednesday.
Before the debate begins, legislative work will focus on the issue of defective Takata airbags, a topic postponed from the last Plenary Session. The session is scheduled to begin at 1500 hours local time.
During the debate, party leaders and all Members of Parliament will deliver speeches, addressing both the budget itself and the broader economic, political, social, and international contexts in which it was drafted.
The 2025 state budget, as initially submitted to Parliament, records an increase in expenditures and significant changes in revenue and spending categories. Total expenditures are projected at €9.4 billion, reflecting a 3.25% increase compared to the 2024 budget, while total anticipated revenues are expected to reach €11.75 billion, marking a 4.1% rise.
Overall, the total expenditures for the 2025 state budget amount to €12.93 billion, including €3.53 billion allocated to the Permanent Fund, which does not require legislative approval as it covers fixed state expenses.
Direct taxes are expected to rise by 4.9%, reaching €3.92 billion, while indirect taxes are forecasted to increase by 5.6%, amounting to €4.56 billion. Non-tax revenues show the highest percentage increase at 10.3%, reaching €1.83 billion.
While personnel expenses are slightly reduced by 1%, operational costs see a significant increase of 21.4%. Transfer payments, which include social benefits and grants, rise by 5.3%, and capital expenditures for investments and infrastructure increase by 4%. Conversely, public debt servicing costs are expected to decrease by 18.6%.
The Minister of Finance has submitted 34 amendments, including credit reallocations and staffing adjustments, to ensure the smooth operation of the state machinery. These amendments entail additional expenditures estimated at €25.9 million for 2025.
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