Budget deficit reaches 5.3%

Wednesday 31 March 2010

The Dutch budget deficit rose to 5.3% last year, almost double the euro stability pact limit of 3%, according to preliminary figures from the national statistics office CBS.

In 2008, the Netherlands had a small budget surplus of 0.7%.

The deficit amounted to just over €30bn, or €2,000 per head of the population, the CBS said.

Public expenditure rose nearly 8% in 2009 and ministers spent €19.6bn more than the treasury received in taxes and premiums. Local governments overspent their income by €3.4bn.

Government revenues fell by 5%. 'This was predominantly caused by lower revenues from corporate tax, value added tax, property transfer tax and dividend tax,' the CBS said. 'Total revenues from wage tax and social contributions remained almost the same.

In addition, income from the Netherlands natural gas revenues plummeted by one third. But the treasury earned extra cash from interest and dividends following the bail-out of the banking sector following the financial crisis.

Earlier this month, the European Commission warned the Netherlands to take steps to get public spending back under control. The deficit is forecast to top 6% this year.

© DutchNews.nl

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