News item | 21-05-2025 | 10:30 am
The Netherlands looks good financially. Despite a slight contraction in the first quarter, the Dutch economy grew by 1.0%in 2024. The growth was stronger than expected and that had a positive effect on public finances. The budget deficit for 2024 has been set at – 0.9% of the gross domestic product (GDP). This is evident from the financial report of the government 2024, the year in which the Schoof cabinet took office at the beginning of the summer.
Finance Minister Eelco Heinen offered the accountability documents to the House of Representatives today – accountability day. In addition, the minister explicitly pointed out to the current geopolitical situation. “We are presenting this annual report against the background of major international tensions. The ongoing war in Ukraine and the import taxes announced by the United States leads to a lot of uncertainty. That can have consequences for our open economy and therefore also for the budget. We must not count richly. That is why it is important to be careful and detained with the Refinancing Beninancia.”
Economics, inflation and purchasing power
The economy did well in 2024. The economic growth over 2024 amounted to 1.0%; Something more positive than the Central Planning Bureau had calculated in advance (0.6% growth). Unemployment remained historically low (3.7%). Inflation was higher (3.3%) than average in the rest of the euro zone (2.4%) and wages increased by an average of 6.7%in 2024. The increase in purchasing power was 2.9%. That too was more than was foreseen in advance.
Budget deficit and national debt
The public finances for the past year are more positive than expected at the start of the financial year, for example because expenditure has been shifted to later years. The budget deficit (EMU balance) over 2024 amounted to-0.9% of GDP (a deficit of € 10.1 billion). In the Budget Memorandum 2024, the deficit was still estimated at 2.9% of GDP. At the end of 2024, the national debt (EMU debt) was at a low level of 43.3% of GDP in a historic perspective (€ 491.6 billion). However, it is expected that the debt will increase in the coming years. With the reported figures, the Netherlands remains well within the European reference values for the deficit (3% GDP) and the debt (60% of the GDP) of the Stability and Growth Pact (SGP).
Income and expenses
The tax and premium receptions in 2024 in general corresponded to expectations. On the expenditure side of the National Budget, a total of € 17 billion in expenditure on balance is postponed (cobblestone sliders) or not fully spent (underdealing). This is mainly the result of unrealistic ambitions and the stubborn shortage on the labor market. In the budget process, the government continues to focus on more realism in ambitions and plans. The cash sliding in 2024 are part of that approach.
Legality and imperfections
In 2024, the legality of public finances was further improved. For the expenditure (99.67%) and receipts (99.94%), the legality percentage is well within the Tolerance limit used by the Court of Audit of 1%. Only with the obligations (98.94%) is that standard, despite a small improvement, slightly exceeded. In addition, the Court of Audit notes a total of 40 imperfections, 3 of which are serious.
The government’s financial report, the departmental annual reports and all other accountability documents can be found on www.rijksfinancien.nl