News item | 18-04-2025 | 12:07
Tensions are rising worldwide. That is why the government is focusing on stability and safety. In this way, support for Ukraine is continued and more money goes to Defense. In this time of high inflation, the government chooses to delete the VAT increase on sport, culture and media and to lower the tax on energy bills. There will also be more money for municipalities, increasing the housing allowance and for repairing errors around WIA benefits. In all of this, the Cabinet will maintain the budget rules and the financial agreements in the Outline Agreement without prejudice to. All setbacks and new investments are provided with budgetary coverage and the budget deficit will remain within the 3%limit in the coming years.
The Spring Memorandum, which Minister Heinen (Finance) sent to the Lower House today, includes an update of the budget for this year and a preview of the plans for 2026 and the following years.
Minister Heinen: “There is a sturdy and good package for the Netherlands. We are covering setbacks and at the same time also make a number of targeted investments. We do not move any bills through. We will prevent taxes in the future. I am standing for healthy and solid government finances. That has helped us with the Corona and Energy Crisis, also in a time. interest.”
Income and expenses
The government is holding on to the established financial frameworks and the trend budget policy. At the same time, investments must be made to resolve the challenges that the Netherlands stands for. In this spring memorandum, the cabinet covers setbacks and are investments and bows. For example, setbacks on asylum, the EU payments and the disability (WIA) have been processed. In addition, the government is investing in Defense (€ 1.2 billion structurally) and resilience. The earlier cutbacks on childcare is also reinforced. Furthermore, the housing allowance will be increased and municipalities will receive extra money in the coming years. The Lower Saxony Line and a number of other priority infrastructure projects in the Northern Netherlands are being realized, covered by the reservation for the Lelylijn.
In order not to rise further, choices must be made. The government is opting for interventions in social security (unemployment benefit and the child -related budget), in the costs for medicines and making youth care manageable. On top of that, a brake is put a brake on the growth of government spending by partially means of the price adjustment.
The cabinet has decided to reduce the energy tax and allocated € 200 million per year in the 2026 to 2028. The increase in VAT on culture, media and sport is definitively deleted. This is paid by the tax brackets and tax credits within the income tax limited to compensate for price development.
Budget deficit and national debt
Based on the Spring Memorandum, the budget deficit (EMU balance) is estimated before 2025 on -2.6% of GDP, and for 2026 it is a shortage of -3%. This year, the national debt (EMU debt) is expected to be 45.2% of GDP and in 2026 at 47.8%, well below the European standard of 60% of GDP. This means that the Spring Memorandum is in line with the financial agreements that were established at the start of this government term.