Monaco’s 2021 Preliminary Budget Reveals €114.5 Million Deficit

Minister of Economy Jean Castellini. Photo: Michael Alesi/DC

Minister of Economy Jean Castellini. Photo: Michael Alesi/DC

Minister of Finance and the Economy Jean Castellini has revealed a draft of Monaco’s 2021 budget, which the National Council will vote on next month.

For the first time since 2015, the preliminary budget shows a deficit of €114.5 million. “If between 2012 and 2019, the Principality's final annual budget ended in surplus, that will not be the case in 2020,” said the minister.

There’s an estimated €40 million drop in revenue for 2021, reflecting a reduction in VAT linked to consumption.

Some of key points of the 2021 budget include a commitment to the “National Housing Plan for Monegasques,” which takes a third of the €625 million funds for investment spending, with 800 new apartments expected to be delivered between 2022 and 2025.

€45 million, has been dedicated to the country’s digital transition, and the development of infrastructure such as the sovereign Cloud, as well as the transformation of the administration and the development a digital

In the health sector, €17 million is set aside for Cap Fleuri, €11 million CHPG, € 44 million for the redevelopment of Larvotto (expected summer 2021), and €8.6 million for the maintenance of the Estate buildings.

In terms of mobility, the government will continue with the renovation of the Grimaldi Forum and Larvotto car parks, 12 new MonaBike stations and €4 million for mechanized vertical links (elevators, escalators) in the Principality, but also in the municipality of Beausoleil (€3 million), and renovation of TER trains.

Castellini emphasized that this preliminary budget is “pragmatic and flexible,” and includes measures mentioned in consultation with the National Council, like the extension of the CTTR until the end of March 2021 (€40 million).

“Our objective remains to find a balanced budget as soon as possible and to preserve the Principality's economic and social model,” Castellini emphasized..