The Dutch budget deficit is more than 3% of gross domestic product (GDP), which is higher than Brussels allows, Finance Minister Sigrid Kaag said in her speech. Spring financial results announcement on friday.
The figures show that there is no longer room to absorb new setbacks if governments want to stay within European standards, and the next cabinet (with elections scheduled for March 2025) will head for Brussels. We need to take steps to stay within the rules. Financiere Dougblood report.
“Ministers have a joint responsibility to cover the budget as much as possible, taking into account rising interest rates,” Kaag said. “We don’t want to pass the bill down to future generations because it’s the only way we can meet the big challenges of the future.”
The Spring Statement is an annual update to this year’s budget, plus an outlook for the next few years. Ministers reached agreement on Wednesday in a statement after weeks of intense negotiations.
As previously leaked or announced, spending will be cut across the board to curb the deficit and meet cabinet pledges on Groningen, the child care benefit scandal and refugees.
For example, the Cabinet Another €13.5 billion Regarding the payment of the government’s “honor debt” to Groningen after the earthquake. A further €1.3bn will be spent on reparations following the child care benefit scandal, increasing the cost of caring for asylum seekers by €1.6bn.
Ministers also agreed that health workers who contracted long Covid during the first wave of the coronavirus pandemic are entitled to a one-off payment of €15,000 per person.
The extra spending will be covered by not increasing the ministry budget to match inflation and ancillaries.
Plan to introduce virtually free childcare for all postponed from 2025 to 2027 arouses controversy STAP TRAINING BUDGET It will be discontinued after this year.
In addition, traffic fines will be increased by 10%. With more deaths than expected, public pension expenditures will also drop by around €250 million, according to Treasury documents.
https://www.dutchnews.nl/news/2023/04/budget-deficit-creeps-up-to-3-no-room-for-further-setbacks/ Fiscal deficit widens to 3%, no more room to retreat