State wants to slash provincial budgets

The state is preparing to make significant savings in the budget for the country’s 12 provinces reports Tuesday’s Financieele Dagblad.

The income of the provincial governments is between €600m and €800m higher than they need to carry out their tasks under existing agreements, the paper says.
This means the provinces could lose half of the €1.1bn budget (Provinciefonds) they receive from the state. Other sources of income for the provinces include local taxes, dividends from their stalk in public utilities and European Union subsidies.
According to the FD, the provinces’ revenues have doubled in the past 10 years.
The Hague has not yet decided how the cuts in provincial budgets will be made and is waiting for a report from an advisory committee which will establish exactly how much surplus funds they currently receive. The report is expected in mid March, the paper says.

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