News item | 11-12-2023 | 5:40 PM
Trend-based budget policy brings predictability, peace and stability to political decision-making. It helps to make and weigh policy choices and to make investments for the longer term. This is stated in part 2 of the advice of the 17th Budget Space Study Group (SBR), which was sent to the House of Representatives today. The advice supports political parties during their formation when drawing up budget policy.
Main points of advice
The study group makes three main recommendations:
- Predictability, calm and stability are of great value in the budget and decision-making process. This requires a fixed main decision-making moment in the spring on expenditure and certain charges, and purchasing power decision-making in August.
- Simplify the budget system where possible. Less complex rules improve compliance and support for the rules. The study group recommends various simplifications of budget rules, such as placing interest outside the expenditure ceiling and abolishing so-called partial ceilings.
- A realistic budget forms the basis of budget policy. A realistic budget is a budget that reflects expenditure and income as accurately as possible. This provides certainty and strengthens the credibility and effectiveness of policy. Underspending and cash slippages undermine a realistic budget and should therefore be limited as much as possible.
Broad prosperity
Fiscal policy supports the achievement of goals for broad prosperity. In the pursuit of broad prosperity, the consequences of policy for citizens and companies are taken into account. The study group recommends using broad prosperity as a basis for the goals in the coalition agreement.
Continuation of part 1
Part 2 of the advice of the 17th SBR follows part 1: both parts emphatically form one substantive whole. In part 1, the study group recommends a course correction for the coming cabinet period to a budget deficit of approximately 2% of gross domestic product (GDP) in 2028. This provides sufficient distance from the European -3% standard and contributes to a stable debt and thus healthy public finances. The budget statement for the upcoming cabinet period will then structurally amount to approximately 17 billion euros from 2028.
Budget Space Study Group
The SBR is an official working group that provides advice on the main features of budgetary policy and budgetary rules. The study group is chaired by the Secretary General of the Ministry of Finance and also consists of top officials from the Ministry of General Affairs, the Interior and Kingdom Relations, Economic Affairs and Climate, Finance, Social Affairs and Employment, Public Health, Welfare and Sport. the Central Planning Bureau and De Nederlandsche Bank. The Netherlands Environmental Assessment Agency and the Social and Cultural Planning Office have an advisory role.