News item | 27-03-2026 | 3:30 PM
The government is presenting its first Spring Memorandum today, including the Starting Memorandum. The Initial Memorandum establishes the budget rules and annual expenditure ceilings and revenue frameworks for the coming cabinet period. The budget deficit next year will be close to the European limits, but will remain within them. In the following years, the deficit will decrease and the government is aiming for a lower balance of -2.1% in 2030. The economic impact of the conflict in the Middle East has not yet been included in this Spring Memorandum.
Minister Heinen (Finance): “This Spring Memorandum is a translation of the financial agreements from the coalition agreement. The Netherlands faces major challenges. The government will tackle these while we keep the public finances in order. In addition to economic stability, this ensures the maintenance of financial buffers. However, the economic prospects are uncertain, partly due to the war in the Middle East. We must prepare for this.”
Challenges
Substantial investments will be needed in our defense and economy in the coming years to ensure that the Netherlands remains safe and prosperous. Major steps need to be taken in nitrogen policy and in the housing market. The aging population also requires an ambitious approach so that our public facilities remain accessible and affordable. These ambitions require choices and reforms. The cabinet will discuss this with parliament in the near future.
Importance of buffers
To prevent future generations from paying the bill, the government adheres to European budget rules and implements trend-based budget policy. This is important for economic stability and a good investment climate, which is necessary to continue paying for our facilities. In addition, trend-based budget policy contributes to control of public finances and ensures that the budget acts as a shock absorber in economically uncertain times. This is extra important given the current conflict in the Middle East, the impact of which on the economy is still unclear. The situation may deteriorate further, putting further pressure on economic growth, inflation and the budget deficit. The government is preparing instruments to absorb economic shocks if necessary.
Solid public finances
The Spring Memorandum is also the Cabinet’s Initial Memorandum. The financial frameworks for the coming years have been established based on the most recent economic estimate from the Central Planning Bureau. This also includes some setbacks, including disability.
The budget deficit will be high next year, but will remain below 3% of GDP. With the frameworks in the Initial Memorandum, the government is aiming for a budget deficit of 2.1% in 2030. The national debt remains below 50% of GDP. The government thus complies with European budget rules.
