Due to the cooling housing market, Flanders receives 692 million less from registration fees than expected. And because the growth of the Belgian economy is estimated at 1.3 percent instead of 1.6 percent, Flanders will receive 310 million euros less money through surcharges on federal tax revenues. Together that means a loss of 1 billion.
According to the business newspaper, the Flemish government reports that the budget deficit for 2024 will not amount to 1 billion euros, but 2 billion euros. However, that communication contains ‘exceptional expenses’; such as the Oosterweel works and the recovery plans are not included. The actual deficit, including those investments, is 3 billion euros.
“Given that we are not short of money, new expenditure will mainly have to be examined to see what is possible within the existing budgets,” Budget Minister Matthias Diependaele (N-VA) responded to ‘De Tijd’. “A balance in 2027 remains feasible, but we should not be crazy now.”