The Monegasque government has unveiled its 2025 preliminary budget, set to be reviewed by the National Council at the end of December, highlighting anticipated revenues of 2.098 billion euros and expenditures of 2.187 billion euros. With a 2.6 percent increase in revenue and a 6.1 percent rise in spending from 2024, the budget projects an expenditure surplus of 88.6 million euros, following a 2024 amendment showing a significant budget surplus.
Compared to the amended 2024 budget, revenues show a 6.8 percent decrease, attributed mainly to a decline in VAT collections, with VAT revenue down by 77 million euros (-7 percent), including reductions in real estate and internal VAT by 75 million euros and 24 million euros, respectively. However, contributions from the sharing account have increased from 37 million euros to 120 million euros. Growth is expected in corporate income tax (up 60 million euros, or 28.6 percent) and legal transaction fees, while state domain income is projected to rise by 10.9 percent, reaching 486.4 million euros, driven by revenues from real estate projects.
Increased Expenditures: Public Services and Infrastructure
The 2025 budget outlines a six percent increase in operating costs over the prior year, with personnel expenses, representing 52 percent of the budget, rising by 4.3 percent. The allocation for public interventions shows a modest 1.1 percent increase, though individual allocations vary. The town hall allocation is set to rise by 4.9 percent, while funding for the Scientific Centre of Monaco is reduced by 505 million euros due to the transfer of certain activities, including those under the “Cobas” platform, to the new CHPG medical biology lab.
Notably, the subsidy to TV Monaco will also be cut by 5 million euros, while economic development funding is set to decrease by 3.4 percent, including reductions in the Blue Fund and communication costs. Meanwhile, credits for business support and economic studies will see slight increases.
Strategic Investments in Mobility and Infrastructure
Key allocations include 11.9 million euros to support financing for two TER trains, 3 million euros for planning of the La Brasca parking project and underground connections, and 6 million euros for electrification of the Rainier III quay for cruises. Additionally, 6.8 million euros will go toward the ongoing development of the Larvotto area.
Health and social infrastructure spending is significantly increased, with the budget for health and social equipment rising to 179.3 million euros, mainly to support the National Housing Plan as well as projects like the Cap Fleuri 1 reconstruction and an AMAPEI residential home in Devens.
Environmental priorities are also evident, with 20 million euros allocated to the Waste Treatment and Recovery Center, increasing its total budget to 70 million euros. The “National Green Fund” within the Treasury’s Special Accounts is dedicated to funding sustainable development initiatives targeting greenhouse gas reduction.
This budget reflects a commitment to infrastructure and environmental sustainability, with the National Council set to debate these priorities as the budget review approaches in December.