Dutch government expects lower budget deficit thanks to windfalls
The Dutch government expects the budget deficit and state debt to fall this year thanks to windfalls in areas such as health and child care and a further improvement in the economy.
The information is contained in the spring budget presented to parliament by finance minister Jeroen Dijsselbloem. The spring budget is an interim look at how the annual budget for the year is being carried out.
Dijsselbloem now expects the budget deficit to fall to 2.1% of gdp, 0.1% lower than estimated last September in 2015’s annual budget. Government debt is expected to be 68.6% of gdb, 1.4% lower than September’s estimate, according to media reports.
The government’s macro-economic forecasting agency CPB puts economic growth at 1.7%, rather than its earlier estimate of 1.25%. The stronger growth comes from an increase in exports due to improving world trade and a fall in the value of the euro.
Windfalls for the government include lower unemployment benefit and child care payments, cheaper medicines and a rise in business taxes as companies make more profit. These and the overall improvement in the economy have gaven the government an extra €2.5bn in income.
However, some areas are costing more than was budgeted for. The cost of taking in asylum seekers rose €400m and there were more students than expected costing an additional €200m.
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