Budget deficit higher than forecast

Friday 20 November 2009

The budget deficit is set to reach 5.1% of gross domestic product at the end of this year, some 0.3 percentage point more than forecast in September, tv station RTLZ reports.

At the presentation of the government's spending plans in September, finance minister Wouter Bos said the deficit would rise to 4.8% this year.

Ministers will discuss the latest economic forecasts at their cabinet meeting later on Friday, the tv station said. The worsening position is due to a shortfall in expected income from taxes and social security premiums.

Earlier this month, the European commission ordered the Netherlands to cut its budget deficit to below the official EU level by 2013. Under EU rules, the budget deficit must be below 3% of gross domestic product.

Only two EU countries have lower budget deficits than the Netherlands: Finland and Luxemburg.

© DutchNews.nl

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