Monday afternoon marks the start of a three-day debate in parliament on the 2025 state budget, culminating in a vote by the plenary on Wednesday.

Before the budget debate, work will focus on the issue of defective Takata airbags following the topic’s postponement from the previous plenary session.

During the debate, party leaders and all MPs will address the budget itself and the economic, political, social and international contexts in which it was drafted.

The 2025 state budget, as initially submitted, records an increase in expenditure and significant changes in revenue and spending. Total expenditure is projected at €9.4 billion, reflecting a 3.25 per cent increase compared to the 2024 budget, while total anticipated revenues are expected to reach €11.75 billion, marking a 4.1 per cent rise.

Overall, the total expenditures for the 2025 state budget amount to €12.93 billion, including €3.53 billion allocated to the permanent fund, which does not require legislative approval as it covers fixed state expenses.

Direct taxes are expected to rise by 4.9 per cent, reaching €3.92 billion, while indirect taxes are projected to increase by 5.6 per cent, amounting to €4.56 billion. Non-tax revenues show the highest percentage increase at 10.3 per cent, reaching €1.83 billion.

While personnel expenses are slightly reduced by 1 per cent, operational costs see a significant increase of 21.4 per cent. Transfer payments, which include social benefits and grants, rise by 5.3 per cent, and capital expenditures for investments and infrastructure increase by 4 per cent. Conversely, public debt servicing costs are expected to decrease by 18.6 per cent.

The minister of finance had submitted 34 amendments, including credit reallocations and staffing adjustments, to ensure the smooth operation of the state machinery. These amendments entail additional expenditures estimated at €25.9 million for 2025.