Dutch budget deficit will drop to 1.8% next year, says Brussels
The Netherlands will meet Brussels’ budget deficit targets this year, according to the latest official European economic forecast.
The forecast states the budget deficit will rise slightly to 2.8% in 2014, as cuts in natural gas production lead to some revenue losses. Under eurozone rules, the deficit should not exceed 3%.
‘However, non-gas government revenues are expected to increase in line with the improving economy, and structural savings of around 0.1% of GDP should be realised in the healthcare domain,’ the report says.
The economy is forecast to grow 1.2% this year and 1.4% in 2015.
In 2015, the deficit will drop to 1.8% as ‘domestic demand recovers’ and ‘higher revenues from labour and indirect taxes are projected to boost revenue’.
The decentralisation of social security and long-term care will also have an impact, the report states.
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