Monaco: Bill establishing the proposed 2026 Amended State Budget submitted

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Monaco: Bill establishing the proposed 2026 Amended State Budget submitted

On 30 June 2026, the Princely Government submitted Bill no. 1,127 establishing the Amended State Budget for the 2026 financial year.

The Bill revises the revenue and expenditure forecasts set out in the 2026 Initial Budget to reflect changes in the economic environment and the progress of public projects.

Revenue revised downwards

By way of background, Law no. 1,586 of 19 December 2025 established Monaco’s Initial State Budget for the 2026 financial year.

Budget revenue was initially estimated at €2.217 billion, compared with €2.489 billion under the 2025 Amended Budget, representing a decrease of approximately 11%.

The 2026 Amended Budget now forecasts revenue of €2.145 billion. This represents a reduction of €71.9 million, or 3.3%, compared with the Initial Budget.

The decrease mainly results from lower tax receipts, particularly net Monaco VAT revenue and business profits tax.

This reduction is nevertheless partly offset by increases in:

State property income and revenue;
revenue generated by administrative services.

Expenditure also adjusted

Budget expenditure has been reduced to €2.139 billion, compared with €2.208 billion under the Initial Budget.

This represents a decrease of almost €69 million, or 3.1%.

The overall adjustment reflects two contrasting developments.

Increase in ordinary expenditure

Ordinary expenditure has increased by €42.4 million, representing a 3% rise compared with the Initial Budget.

This increase is mainly attributable to higher operating expenditure and public interventions.

Reduction in capital and investment expenditure

Capital and investment expenditure has been reduced by €111.5 million, or 14%.

This decrease notably results from the postponement or rescheduling of several major projects, leading to a revision of the timetable for expenditure initially planned for 2026.

The proposed 2026 Amended State Budget provides for a surplus

Despite the reduction in revenue and the adjustment of expenditure, the proposed 2026 Amended Budget provides for a positive balance.

The projected surplus, initially set at €8.8 million in the Initial Budget, has been revised to €5.9 million.

The proposed Amended Budget therefore confirms the continued balance of Monaco’s public finances, notwithstanding lower projected tax revenue and changes to the public investment timetable.

Improved position of the Special Treasury Accounts

The Special Treasury Accounts also show an improved financial position.

Their overall balance, initially projected to record a deficit of €2.7 million under the Initial Budget, would become a surplus of €2 million under the proposed 2026 Amended Budget.

Key figures from the proposed 2026 Amended Budget

Revenue: €2.145 billion
Expenditure: €2.139 billion
Projected surplus: €5.9 million
Reduction in revenue compared with the Initial Budget: €71.9 million
Reduction in expenditure compared with the Initial Budget: almost €69 million
Special Treasury Accounts balance: +€2 million

Bill no. 1,127 will now continue through Monaco’s legislative process.

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