2020 budget: the main points in the government’s spending plans
A youth parliament to give youngsters a voice in political developments, €2bn to stimulate local councils and housing corporations to build more homes and the introduction of company bike – as opposed to car – schemes are among the government’s plans for 2020. Here are the main points:
Taxes and income
- Spending power to rise across the board, people in jobs will benefit most
- Tax on cigarettes and rolling tobacco will rise by €1 on April 1
- More parents to qualify for extra child benefits, cost to the cabinet €500m
- From July 1, new fathers to get five weeks paternity leave, paid at 70% of salary*
- The state pension (AOW) age will remain 66 years and four months*
- Employers will pay lower jobless benefit (ww) premiums for workers on permanent contracts, more for people on flexible contracts*
- Healthcare benefits to rise €67 a year for single people, €95 for couples
- The tax on energy will rise but bills will be cut by €100 for the average household via a tax back scheme
- Tax break for freelancers to be reduced from €7,030 to €5,000 by 2028*
Healthcare
- €50m on top of earlier announced €370 to train healthcare workers
- More money for family doctors and psychiatric care
- €1bn up to 2021 for youth social services
- Maximum ceiling for drugs prices to be reduced by changing calculation method and pressuring manufacturers
Transport
- Investment in roads to reach almost €3bn, including A9 and A1 improvements
- €100m to keep shipping lanes properly maintained
- Introduction of company bike schemes for commuters from January 2020
- €100m to boost the sale of second hand electric cars up to 2024
- €2.6bn for the railways, including new safety systems
- Introduction of more ‘train every 10 minutes’ services
Education
- €333m to reduce pressure on primary school teachers, €270m for salaries*
- University and college fees to remain at 50% for the first year
- More money for trade schools and for pre-school projects in disadvantaged areas
- €15m to support gifted children
- €5m to stimulate diversity in science
Home affairs
- €1bn to the six big cities to enable local authorities to speed up housing construction
- €1bn to lower taxes paid by housing corporations
- Threshold for social housing to rise to €42,000 for a couple
- Tenants to earn too much for social housing to face rent increases of up to €100 a month
- €50m to develop a clean air agreement with local and provincial governments
- A ‘youth parliament’ to give youngsters a voice in politics will be established
- New rules will be introduced for political party (online) campaigning
Defence
- Defence spending to reach €11bn or 1.35% of GDP
- Investment in defence staff recruitment to solve 8,000 structural shortages
- Better contracts, investment in equipment
- Strengthening of national cybersecurity by increasing the capacity of the military intelligence service MIVD and the Defense Cyber Command
Justice and security
- More tools for police and the public prosecutor to confiscate criminal earnings
- Fines for internet providers if online child pornography is not removed from servers and computers within 24 hours
- €95m extra for courts
- More limits on access to free legal advice and support*
- Sanctions for people who launch cyber attacks
- A structural €65m to speed up asylum procedures and and extra €35m in 2020
- Structural deals with other European countries on accommodating refugees to make sure the protection of refugees is the same European wide
- Prevention of illegal immigrationand people trafficking in cooperation with the countries of passage in North Africa
Climate and nature
- Further develop plans to phase out the use of gas in private homes*
- More experiments to deal with excess rainwater
- €300m a year up to 2030 to reduce greenhouse gas emissions and €60m for innovation and pilot projects
- €80m to stimulate circularity in construction projects
Economic affairs
- A €7.5m investment in new technologies, such as solar cells, artificial intelligence and biotechnology in 2020, and an annual €10m from 2021
- €65m to be made available to start-ups between 2019 and 2023 to be distributed via the TechLeap NL programme
- A stronger market position for farmers by preventing unfair trading practices
- Promotion of circular farming
*Announced earlier
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