Page 71 - Monaco Economie 125

2023: Budget of over €2 billion by Milena Radoman

As with its 2022 amendment, Monaco has a record 2023 initial budget of €2 billion.

However, this is no time to be naive. Before the majority adoption of the initial for motor sports events (probably linked to the Grand Prix) and + €7 million for
2023 budget on 15 December 2022, the Minister of State, Pierre Dartout, warned: the tariff shield intended to cushion and smooth the rise in electricity supply
«The Russian-Ukrainian conflict continues and reinforces the inflationary trend costs, all also necessarily impacted the 2023 Budget.
already observed since the Covid-19 pandemic […] Monaco, despite its great
capacity for resilience, is not isolated from the rest of the world. The recession €300 million revenue in 1985
announced for 2023, particularly in Europe, is sure to affect us.” «Expenditure has increased almost at the same rate as revenue and we must
be careful to control it,» said the Minister of State. As rapporteur Balthazar
A surplus of €9.1 million Seydoux noted: “Since 2018, the volume of the budget has increased by almost
This provisional budget nevertheless expects a provisional revenue surplus of 65%!” According to IMSEE, in 1985 receipts barely touched the €300 million
€9.1 million, with revenue estimated at €2.03 billion (up by + 7.5% compared to mark and expenditure was limited to €235 million. Revenue and expenditure
that of the initial 2022 budget) and forecasts of expenses amounting to €2.0213 simultaneously crossed the €1 billion mark in 2014 and, thereafter, €2 billion in
million (ie + €135 million). Where does this increase come from? On the revenue 2022. This change in the budget has been analysed by the think tank, Monaco
side, it is largely linked to the increase in tax revenue (+ €233 million) in view 2040**, which estimates that “ we spend everything we earn,» with an impact
of the recovery in economic activity and the impact of the Principality’s major on the budget surpluses that feed the Constitutional Reserve Fund (CRF),
real estate projects (with + €61 million in real estate VAT receipts). Proof that causing politician, Daniel Boeri, to fear that by 2040 «the liquid part of the CRF
real estate is king in Monaco, the offshore extension brought in €100 million will just be equal to the amount of ordinary expenditure» and that there will be
(thanks to the fourth installment of the payment) and the real estate rights «no more reserves.”
linked to population density projects, some €15 million. At the same time, the
appropriations allocated to equipment and investment expenditure have been Seven out of 22 votes against
revised upwards (+€82.5 million), in particular due to registrations dedicated to the Adopted a month and a half before the national elections, this budget received
National Housing Plan for Monégasques (€236.6 million excluding materialisation the disapproval of seven elected officials, each citing their reasons, including:
of exchange*). Other significant expenditure: the Ilot Charles III (+ €24 million); lack of transparency on the negotiation of the association agreement with
the extension of the Grimaldi Forum (+ €28.8 million); the elevation of the building the European Union; method of working with the assembly to be improved;
of the police headquarters (+ €12.3 million); and the deposit account dedicated absence of a concrete plan of action on mobility; reduced quality of life; and
to the construction of the Waste Treatment and Recovery Centre. failure to extend the free bus experiment. Brigitte Boccone-Pagès, the new
Whilst staff costs are also on the rise (+ €33.6 million), public interventions have President of the assembly, did vote in favour of the budget but she highlighted
increased further (+ €92 million), due in particular to the entry of sums dedicated the question of mobility, asking the government for «a major decision at least
to the new television channel, MCRTV, the launch of which is expected in autumn concerning structuring equipment to improve transport to and within Monaco.
2023 (+ €22.8 million). The implementation of the Ségur Healthcare Round Table, The Monégasque state must now invest in the equipment of tomorrow […] The
the continuation of the Blue Fund, as well as the registration of + €12.4 million time for studies is over. Now we have to decide around a clear strategy.”

*The Monégasque state has made a huge change in its accounting: «Registrations of €206 million in 2022 and €84 million in 2023 have been exceptionally made in receipts in order to materialise the exchange
corresponding to the value of the volume and the building rights sold to the promoter of the Testimonio II operation for the private part, in exchange for the construction of the first tower (€206 million) and
the International School (€84 million).”
**https://www.monaco2040.org
Evolution des dépenses (ordinaires et équipement) selon le niveau de « surprise » des recettes entre le Primitif et le Réalisé
Evolution of expenditure (ordinary and equipment) according to the level of "surprise" revenue between the original and the actual
20%

15%
En M€ (échelle logarithmique) In €millions (logarithmic scale) 5%
700
10%

0%

-10%
70 -5%
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Excédent recettes (Réalisé vs Primitif, échelle de droite) / Surplus revenue (realised vs original, right-hand scale)
Dépenses ordinaires - Réalisé / Ordinary expenditure - realised Dépenses équipement - Réalisé / Equipment expenditure - realised
Dépenses ordinaires - Primitif / Ordinary expenses - provisional Dépenses équipement - Primitif / Equipment expenses - provisional

71