Parliament approves 2025 state budget
All 79 coalition MPs approved the 2025-27 public sector budget. Next year, the public finance deficit is to fall to 4.7% of GDP from this year's 5.8%. Public sector revenues are to climb to €59.9bn (42.8% of GDP) and expenditures to €66.5bn (47.5%). The deficit reduction is mainly due to an increase in VAT to 23% and the introduction of a new tax on financial transactions. Other measures will be needed to meet the government's 3% deficit target in 2027, but these are yet to be presented.
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