The three-day debate on the 2025 state budget begins this afternoon in the House of Representatives, culminating on Wednesday with a plenary vote.
Prior to today’s budget debate, legislative work will focus on the contentious issue of defective Takata airbags, a topic deferred in the last plenary session. The session begins at 3:00 PM.
During the budget discussion, party leaders and MPs will deliver speeches addressing the budget and the broader economic, political, social, and international context in which it was drafted.
The initial 2025 state budget shows an increase in expenditures and notable changes in revenue and spending categories. Total expenditure is projected at €9.4 billion, a 3.25% rise compared to the 2024 budget, while forecasted revenues are €11.75 billion, up by 4.1%.
Overall state budget expenses for 2025 amount to €12.93 billion, including €3.53 billion for the Permanent Fund. These fixed expenses do not require legislative approval as they cover routine state operations.
Direct taxes are expected to rise by 4.9%, reaching €3.92 billion, while indirect taxes are forecasted at €4.56 billion, up by 5.6%. Non-tax revenues show the highest percentage increase at 10.3%, totalling €1.83 billion.
Personnel expenses are slightly reduced by 1%, but operating costs are significantly higher, increasing by 21.4%. Social benefits and grants (transfer payments) grow by 5.3%, while capital expenditure for investments and infrastructure rises by 4%. Conversely, public debt servicing decreases by 18.6%.
The Minister of Finance has submitted 34 amendments, including credit transfers and personnel adjustments to ensure the smooth functioning of the state apparatus. These amendments are estimated to add €25.9 million in expenses for 2025.
Also read: Plenary session delayed by an hour: MPs to debate over 100 bills
Source: CNA
