Prinsjesdag on Tuesday will be a day of traditions with little substance
Everyone will have more to spend next year and there will be more money for teachers and for nursing homes, according to the outgoing government’s spending plans for 2018.
The plans will be formally published on Tuesday but parts were leaked to both the Telegraaf and RTL Nieuws at the weekend.
The outgoing cabinet has been forced to come up with a holding budget because the four parties currently negotiating to form a new government have not yet reached agreement on all policy areas.
Nevertheless, the Prinjsesdag rituals – including the king’s speech to open the new parliamentary year – are enshrined in the Dutch constitution and will take place, as usual, on the third Tuesday in September.
That means king Willem-Alexander and queen Maxima will travel to the parliamentary complex in the heart of the The Hague in a horse-drawn coach. There the king will address the members of the upper and lower houses of parliament, plus the diplomatic corps, and outline the government’s plans for the coming year.
Dual role
That speech will be written by the outgoing VVD-PvdA cabinet and will, therefore, be thin on new policy initiatives even though outgoing prime minister Mark Rutte will also be prime minister in the new cabinet.
The lower house of parliament has also agreed not to hold the traditional general debate on the 2018 spending plans on Wednesday and Thursday because the plans will not include controversial subjects.
Nevertheless, the budget and the finance minister’s statement to parliament, will include an update on the country’s finances and forecasts for 2018 and beyond.
The government’s macro-economic think-tank report, leaked to the Telegraaf and RTL Nieuws at the weekend, concludes that everyone will be better off next year, although the actual rise in spending power depends on income and family size.
In addition, the forecasts may become irrelevant when the new government is sworn in and publishes its own new policy measures.
This is what we know already:
- Total government income €285bn, total expenditure €277bn
- Budget surplus to reach 0.8% of GDP
- National debt to fall to 53.7% of GDP
- Economic growth will be 2.5%, compared with 3.3% this year
- On average people will have 0.6% more to spend, those in jobs will notice a 0.8% rise, those on benefits 0.3%.
- Unemployment will decline by 50,000 to 390,000
- €160m extra spending on security and public safety
- €435m extra for nursing homes
- €270m for primary school teacher’s pay
- €25m extra for the food safety board NWA
- €75m extra for the tax office
- Own risk element in health insurance to rise from €385 to €400 a year
- Health benefits will rise by an average €130 a year
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