Michel Roger, the Minister of State of Monaco, has revealed that in recent times the national government has been unable to reduce its deficit expenditure but with the Monaco budget 2012 they will be able to exercise some discipline.
Roger has described that the preliminary 2012 Monaco budget is disciplined and reflects a cautious approach. According to him it is not a strict budget and assured that sectors such as safety, health, social welfare and Civil Services will not be affected.
The Minister of Finance and the Economy, Marco Piccini, has stated that with the 2012 budget the government will look to create a fiscal surplus that will help the country remain globally competitive and create conditions that are necessary for overall social and economic progress. Piccini has stated that in spite of the good economic position of Monaco the government will focus on tackling the problems head on instead of waiting for the crises to grow and affect the national economy.
Highlights of Monaco Budget 2012:
Compared to the preliminary budget of 2011 fiscal, deficit spending for 2012 will be reduced by 40%.
Public and social security expenses for 2012 fiscal will remain the same as 2011.
The government expects that in 2012 revenues will amount to 833 million euros but the expenses will be same.
The cost of governmental investment in infrastructural projects will increase by 17.3 percent compared to 2011 fiscal. A provisional fund will also be created for establishing the Princess Grace Hospital. This is expected to create a fiscal deficit of 57 million.
The government will also play a part in other construction projects Zac Saint Antoine and Odeon Tower. Zac Saint Antoine is located on the border shared by Monaco and Cap d Ail and Odeon Tower is being built in eastern Monaco.
Monaco Budget – Aftereffects:
Cultural organizations such as opera, Printemps des Arts, ballet, and Princess Gate Theatre will be affected the most as a result of the budgetary cutbacks.
Banks will now be asked to fill the gap that has been created after the national government decided to end its cultural sponsorship.
Paul Masserson, the Interior Minister, has stated that the banks must come forward to help the cultural sector because it will ultimately serve their interests.
Monaco Budget 2012 Reception:
Majority of the institutions that are expected to be hampered due to the reduced budget have been philosophical while responding to the deductions. The Nouveau Musee Nationale Monegasque, though, has publicly expressed grief at the absence of funds needed to buy the top class artworks that are ideal for a national museum.
Monaco is presently in a better condition than many of its co-members in the Eurozone. It does not have any sovereign debt and a significant portion of its assets are yet to be used up.
Monaco has liquid assets amounting to almost 2 million euros and its real estate properties have a similar value. Its gold reserves are worth 230 million euros. Government officials have stated that the country has a sustainable and durable social and economic model. They also opine that credibility will be Monaco s biggest tool in attracting top companies and entrepreneurs in the upcoming fiscal.