Health premium 11 euros up, ‘dead roads’ tackled: This is in the plans of Prinsjesdag | Prince’s Day 2022

In order to repair purchasing power, the government is taking major steps with an extensive package that will cost more than 18 billion euros. The most important themes in a row:

Concern

An employee of GGD Haaglanden puts a repeat shot against the corona virus. Healthcare is a huge expense for the government. © ANP

Healthcare costs are rising again, in 2023 the government will spend a total of 103 billion euros on healthcare, which is almost a third of total government expenditure. The healthcare premium will also rise, expected by 11 euros per month to approximately 137 euros for the basic premium. These are estimates, by the way, insurers will submit their final pictures by November at the latest. The costs are rising mainly due to the increasing demand for care, high inflation and wage compensation for healthcare staff. The cabinet is proud of hundreds of millions of euros in extra investments that will be released with the healthcare agreement that has just been concluded, although it is a big disappointment that the general practitioners do not support the deal. They form a crucial link in changes that the government considers necessary to curb the ever-expanding healthcare costs.

Infrastructure

For 2023, 12.9 billion euros is available for infrastructure. There will be a ‘solid investment in maintenance’. The government will invest 4 billion euros here in the coming year. Of this, 2 billion goes to rail, 1 billion to roads, 500 million to waterways and 500 million to water management such as dykes.

Next year, 25 million will go to safety on Rijks-N-roads. This amount will increase further in the coming years to a total of 200 million. By tackling the roadside, for example, the hope is that there will be fewer road casualties on those ‘death roads’ in the coming years.

living

The ship Zr.  Ms.  Trump is waved goodbye.  The defense already received considerably more money earlier this year.

The ship Zr. Ms. Trump is waved goodbye. The defense already received considerably more money earlier this year. © ANP

The housing shortage is high. That is why the cabinet wants to build many new homes in the coming years, so that starters have a chance again and young families can move up the housing market. 900 million euros will be made available for the accessibility of these new residential areas. More money will be added in the fall. The ministry is currently still working hard on plans that indicate where construction can take place in the coming years. More than before, the soil and water are taken into account.

Tenants will get a little more financial air next year. Low-income tenants in a housing association will receive a rent reduction of an average of 57 euros per month in July 2023. That rent reduction was previously planned for 2024, but will be brought forward one year. About 510 thousand households are eligible. The rent allowance will increase slightly from 1 January. As a result of a lower personal contribution, people will receive an additional 16.94 euros per month in rent allowance.

The question is whether all the government's building ambitions can be realised.

The question is whether all the government’s building ambitions can be realised. © Anette van de Goor / DCI media

climate

In order to be able to insulate more houses more quickly, the cabinet will earmark an extra 300 million euros over the next two years. With the money, municipalities can refurbish poorly insulated houses or give residents subsidies to take care of their own house. The money comes on top of the 4 billion euros already reserved for the so-called National Isolation Programme.

defence

We have to wait a little longer, but the NATO standard will be achieved in 2024-2025. That standard – 2 percent of gross domestic product – had already been agreed by all NATO countries in 2014, but that standard was only further removed from the picture with regard to Dutch defense expenditure. Until the war in Ukraine broke out. To the structural extra 3 billion that this cabinet has already agreed, another 2 billion was added this spring. The armed forces use the money to thoroughly refurbish the barracks and other buildings; old buildings are discarded. A lot of money is also being spent on new equipment: 100 investment projects with a size of more than 25 million are planned in the coming years. For example, the ammunition stock will be replenished, new ships and helicopters and extra drones and armored howitzers will be added. We already gave twelve of those large guns – together with Germany – to Ukraine. The Netherlands has already delivered more than 500 million euros worth of military goods to that country.

Finance

Solar panels are installed on the roof of a house.  The subsidy scheme is being put to good use.

Solar panels are installed on the roof of a house. The subsidy scheme is being put to good use. © ANP / ANP

There will be a temporary ceiling on the gas and electricity rates to keep the energy bill ‘manageable’, according to the cabinet. In addition, the first rate of income tax will be reduced: to 73,071 euros, the percentage will be reduced from 37.07 to 36.93 percent. According to Minister Sigrid Kaag (Finance), all expenditures make it ‘possible’ that the government debt will exceed 60 percent by 2030, against EU rules.

Social Affairs

The minimum wage will increase by 10.15% on January 1. It is the largest increase in the minimum wage since its introduction since 1969. Benefits are also rising. The IOAOW will be reduced for all AOW pensioners. This is in addition to the AOW benefit, which is currently about 25 euros per month. There is still 5 euros per month left. Below the line, however, pensioners benefit.

Next year, all people who earn up to 120 percent of the social minimum will receive 1,300 euros in energy allowance. A part of this, 500 euros, may already be paid by municipalities this year. People who work benefit from the increase in the employed person’s tax credit. The government is allocating 2.3 billion euros for this. This means that employees pay less tax and have more left in their pockets.

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Safety

Next year, the cabinet will earmark 23.5 million euros to tackle drug trafficking via the ports, transport companies and Schiphol Airport. It is intended to strengthen access controls, camera networks and employee screening. In addition, 40 million is earmarked for organized crime. Prisons sometimes struggle with criminals who continue to control their networks, so a special ‘Intensive Surveillance Unit’ is being set up in the prison to ‘gather intelligence about their inmates. To facilitate the process of going to court, the cabinet is lowering the registry fees. The fees for SMEs to go to court will be cut by a quarter from 2024. 55 million euros is being earmarked for this.

Asylum

Between 2022 and 2027, the cabinet will allocate more than 1 billion euros for the asylum chain, the largest part for reception.

What else is in the Budget Day plans:

– The scholarship for students living away from home will be increased in both 2023 and 2024.

– Business costs are going up. The Corporation tax goes from 15 percent to 19 percent.

– Wealthy people are hit harder. The tax on savingsshares and a second home will rise from 31 percent to 34 percent, which will rise in three steps over the next three years.

– It tax-free allowance is set at an amount of 57,000 euros, which was about 50,000 euros. In this way, small savers are spared.

– The tax that energy companies pay, the mining levy, goes up. After all, the energy companies are currently making big profits due to the high prices.

– The cabinet wants, as it had already planned, the self-employed deduction dismantle faster. That is the fixed amount that can be deducted from the profit. The cabinet already wanted to get rid of this because it ensures that self-employed people push each other out of the market with low rates.

– The discount on excise duty on petrol and diesel will continue until 1 July 2023. From April of this year we already paid 17 cents less for a liter of petrol and 11 cents less for a liter of diesel.

– So-called directors-major shareholders, DGAs, will pay more tax. The cabinet wants to abolish a scheme whereby DGAs pay less tax on their income than employees with a comparable wage. That yields the state treasury 540 million euros

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