Mobility, Housing and Tax: Monaco’s 2023 Preliminary Budget

Mobility, housing and tax revenue were three hot words during a recent budgetary meeting by Monaco’s National Council. Thanks to an increase in tax revenue, the 2023 Preliminary Budget forecasts a revenue surplus of €9.1 million. The 2022 Preliminary Budget initially forecast a surplus of €2.9 million, which was later amended to €8.8 million.

Tax

Tax revenue is up by €233 million, mostly thanks to commercial transactions (€197 million). The first months of 2022 saw a post-pandemic commercial recovery in activity which took in €136 million in VAT (excluding real estate VAT). Real estate VAT revenue is €61 million.

Housing

Registrations dedicated to the National Housing Plan for Monegasques are up by €61.2 million (totalling €236.6 million) compared to the 2022 Initial Budget.

Several construction operations are getting an increase in expenditure, such as the Ilot Charles III (€24 million), the extension of the Grimaldi Forum (€28.8 million) the building for the Department of Public Security (€12.3 million) and the Waste Treatment and Recovery Centre (€24.4 million).

Grants allocated to the CHPG and its satellite establishments will also be increased by €25.2 million, in particular for the phase 2 of Ségur de la Santé (€11.6 million).

Two year ago, €206 million was added to the 2022 budget and €84 million in 2023 for the Testimonio II operation II. €206 million for the construction of the first tower and €84 million for the International School.

Mobility

During the National Council’s public budgetary session on 18 October 2022, several councillors debated the subject of mobility.

“Traffic in the Principality is paralyzed. Monaco is a perpetual traffic jam from 8 am to 7 pm,” one councillor stated. The primary budget includes €6 million for the decarbonization of the Compagnie des Autobus de Monaco bus fleet, which helps with the issue of traffic.

Expenditure on public interventions is also up sharply (€92 million) due in part to the new television channel MCRTV,  which will be launched in autumn 2023 and has a budget of €22 million.