The main points of the 2015 budget
Few major new policy measures were announced by ministers on Tuesday and much of the key economic information had already been leaked. Here is a summary of the main points:
Taxes and income
- Spending power will rise by an average 0.5%.
- Single parents will see a 10% increase in spending power, single breadwinner families on average incomes a 3% drop.
- Fewer tax breaks for the elderly. Four in 10 pensioners will be worse off.
- Economic growth to reach 1.25%.
- Budget deficit to hit 2.2%, well below the 3% eurozone limit.
- Unemployment to drop from 650,000 to 605,000.
- The lowest tax band (up to €16,645) will be cut by 0.25% to 36.5%, although this is effectively a 0.5% increase.
Health and benefits
- Healthcare own risk to rise from €360 to €375.
- Healthcare insurance will rise by an estimated €10 a month.
- Healthcare benefits for those on very low incomes will rise.
- Income-dependent health insurance premium for pensioners and self-employed to rise.
- Parents who lose their jobs will keep childcare benefits for six not three months.
Security and foreign policy
- Extra spending on defence: €300m to 2018.
- Extra spending on emergency aid: €570m.
- Extra spending on refugees: €375m.
- Extra spending on AIVD security service: €25m per year.
- Foreign affairs ministry to ‘maintain or strengthen’ embassies in the Middle East and unstable regions close to Europe.
Housing
- 6% VAT tariff on home repairs extended to July 2015.
- The points system for determining social housing rents will be revised to take property values more into account.
- People who move house but can’t sell their first home can deduct the cost of both mortgages from tax for three, rather than two, years.
Other measures
- €200m to stimulate innovation.
- Tax relief on environment-friendly cars to be cut.
- Petrol and diesel prices to rise in line with inflation.
- €20m for the Dutch film industry to strengthen its international position.
- Civil service and public sector salaries to rise in line with market developments after a multi-year pay freeze.
- King Willem-Alexander to get a €6,000 pay rise, taking his income to €823,000, queen Máxima to get an extra €2,000.
- Almost €50m to be spent on renovating royal palaces.
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