A Budget Deficit and Major Relaunch of the Economy is Planned for 2021

Monaco’s budget of almost a billion and a half euros for 2021 has been approved unanimously in the Conseil National. 

Not surprisingly in this pandemic stricken year of 2020 there is an exceptional strain on finances due to the short-term measures to help both individuals (CTTR payments) and businesses ride out the crisis. 

Monaco has weathered the crisis better than most – and these support measures have ensured that those whose jobs were impacted and those businesses whose fortunes were whip-sawed or even completely curtailed by the pandemic have opportunities to recover. 

And then there is a bold plan to relaunch the economy and further diversify to balance the tourism sector. This will require an injection of 75 million euros of new investment. All this means a deficit in 2021 of 114.5 million euros in these rather exceptional times. 

When SBM, that titan of institutions, itself has to restructure, that says something about the challenges we all face. Challenges that Stephan Valerie President of the Conseil National reminds us to pull together to overcome. Never one against the other, never polarization in Monaco. Avoid turning on each other while the difficulties move into the rear-view mirror. 

Health

Not to forget also the major successful virus-testing campaigns in the Principality and the opportunity to be retested after the festivities- and the promise of the National Vaccination plan with vaccinations for all who opt in. 

This is the first budget for 2021 (“budget primitif”) which is the very best estimate that can be made at this time. Expenditures are projected at 1.583 billion euros with Revenue projected at 1.468 billion euros. 

In real life budget estimates can rarely be an exact measure of what happens. In 2020 due to the pandemic the Principality had expected a deficit as high as 500 million euros. This has been pared back to 165 million euros after counting in some VAT revenues related to real estate in the major offshore extension. So occasionally there are good surprises as well as bitter medicine. 

Major Investments Planned 

In the expenditures there are 625 million euros set aside for equipment and investment, an increase of 78 million euros over the previous year. 

And the housing plan for Monegasques has received a further injection in the budget of 26 million euros, with over 200 million invested to-date. 

With the budget approved unanimously by all 23 members of the Conseil National they can now concentrate on a full legislative and social program for the Principality knowing that its finances are well cared-for under this budget. 

Monaco’s prized social model has been preserved; the digitization of the Principality proceeds at at fast pace, clean mobility keeps it emphasis with yet more Mona-bike stations – and we have a re-beautified Larvotto beach area to look forward to.