News item | 09-01-2026 | 2:05 PM
The cabinet has asked the Council of State for advice on a proposal to amend the Financial Relations Act. In recent years it has become apparent that there are bottlenecks in certain payments to municipalities and provinces of the government, for example in the area of high administrative and accountability burdens. After advice from the Council of State, the bill can be sent to the House
New benefit form: the special fund benefit
Provinces and municipalities receive income in different ways. Some of it comes in through our own taxes, but the majority of the income of municipalities and provinces comes from the government. These various government benefits are regulated in the Financial Relations Act.
Bottlenecks have arisen with certain types of benefits, for example with the decentralization benefit. This will be replaced in the revised law by the special fund benefit (BFU). Just like the decentralization benefit, the BFU is part of the provincial fund or municipal fund. This means that the benefit benefits the general resources of the province or municipality, so that they no longer have to account to the government for how they spent the money. That means fewer accountability burdens. The bill does stipulate that the government may request information to see whether goals are being achieved and the costs are appropriate. The BFU can therefore be a good alternative to the specific benefit and can contribute to reducing the number of specific benefits, which has increased considerably in recent years.
Adjustments to specific benefits
There will also be some changes with the specific benefit. For a specific benefit, the government provides money to municipalities and provinces under certain conditions. Provinces and municipalities may only spend the money for the purpose for which the government has intended the benefit. This form of benefit provides a lot of work for municipalities, provinces and the government. That is why efforts are being made to reduce the work (for provinces, municipalities and the national government).
Furthermore, the bill adjusts various rules regarding the general payment from the provincial and municipal funds.
Limited adjustment of the FinBES
The Caribbean public bodies (Bonaire, Sint Eustatius and Saba) also receive income from the government. These benefits are not regulated in the Financial Relations Act, but in the Finances of Public Entities Bonaire, Sint Eustatius and Saba Act (FinBES). This benefit system is different and therefore most adjustments do not apply to the Caribbean public bodies. However, there is a benefit for the Caribbean public bodies that is very similar to the specific benefit: the special benefit. The rules for the special benefit and the specific benefit are almost the same. That is why this bill also immediately regulates most adjustments to the specific benefit for the special benefit.