The two coalition parties have reached agreement on the broad outline of next year’s spending plans, broadcaster RTL said on Monday.

Sources have told RTL that the coalition, made up of the right-wing VVD and social democratic PvdA, plan to scrap a number of savings and boost spending on education, the police and defence ministry.

The sources said each party has come up with €600m in spending plans. Labour has opted to scrap planned cuts in spending on care of the elderly and the handicapped and will allocate more money to education. In particular, €200m has been earmarked to boost equal opportunities at school.

The VVD is to drop plans to reduce spending on the courts and to ditch more prison closures. It also wants to boost spending on the defence ministry by €300m.

The two parties have also agreed to scrap planned cuts in housing benefit, RTL said.

The budget, which will be presented on the third Tuesday in September, is the final one for the current cabinet. The Netherlands will elect a new government next spring.