## Luxembourg: Selected Issues

_IMF Staff Country Reports, June 7, 2024_

## Source details

**Canonical URL:** [Luxembourg: Selected Issues](https://www.imf.org/en/publications/cr/issues/2024/06/07/luxembourg-selected-issues-549933)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/06/07/luxembourg-selected-issues-549933/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/06/07/luxembourg-selected-issues-549933/index.json)
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## Bibliographic details
- Published: June 7, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400277931.002

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### Overview and scope
- Publication title: Luxembourg: Selected Issues
- Publication date: June 7, 2024
- Series: Country Report No. 2024/156
- Issue: 156
- Pages: 17
- DOI: https://doi.org/10.5089/9798400277931.002
- ISBN: 9798400277931
- ISSN: 1934-7685
- Publisher series: IMF Staff Country Reports
- Primary subjects: Corporate income tax, Expenditure, International organization, Monetary policy, Personal income tax, Revenue administration, Social protection spending, Taxes
- Keywords noted in the source: ample fiscal space, CIT revenue, copyright page, Corporate income tax, GDP share, Global, Personal income tax, personal income taxation, property taxation reform, Social protection spending, spending pressure

### Main findings on fiscal position and drivers
- The paper analyzes the main drivers of revenues and expenditures in recent years.
- Ageing costs are rising and constitute an important background factor for the fiscal outlook.
- Recent revenue increases should not be taken as given.

### Fiscal outlook and risks
- The analysis discusses the fiscal outlook accounting for the announced government plans and fiscal risks.
- To preserve ample fiscal buffers and support the government’s commitment of keeping Luxembourg’s AAA rating, a more prudent fiscal policy would be advisable.

### Policy options and recommendations
- Additional tax reforms should be done in a budget-neutral manner.
- The growth of compensation of employees should be limited.
- Social programs should be better targeted, and their efficiency increased.
- Early pension reform would help limit spending pressures.
- A national framework could help anchor fiscal policy and maintain a credible commitment to prudent fiscal policies.

### Institutional and cross-cutting suggestions
- Safeguarding ample fiscal space requires attention to both revenue assumptions and expenditure pressures.
- Strengthening the credibility of fiscal policy can support the AAA rating commitment.

*International Monetary Fund. Luxembourg: Selected Issues (IMF Staff Country Reports 2024, 156).*

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## Content in this bundle

- **Luxembourg: Selected Issues; IMF Country Report No. 24/156; May 13, 2024**
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  - [Luxembourg: Selected Issues; IMF Country Report No. 24/156; May 13, 2024 (PDF)](/-/media/files/publications/cr/2024/english/1luxea2024002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/06/07/luxembourg-selected-issues-549933_