The main points of the budget

The government plans to cut spending by €3.2bnvy 2015 and has not introduced any new policy initiatives because of its caretaker status. Finance minister Jan Kees de Jager will debate the budget with MPs next week.


The main points of the budget:
General finances

  • Budget deficit to reach 3.9% in 2011, down from 5.8% this year
  • National debt to reach €350bn in 2011
  • Economic growth up 1.5% in 2011
  • Inflation to reach 1.5% in 2011
  • Unemployment to hit 5.5% end 2010
  • Spending power to go down by an average 0.25% next year, pensioners hardest hit
    Taxes and premiums

  • No changes to mortgage tax relief
  • Top corporate tax rate to be cut to 25%
  • Value added tax (btw) unchanged at 19%
  • No change on tax breaks on energy-efficient cars
  • Basic health insurance own-risk contribution to rise €5 in 2011 and €40 in 2012
  • 25 cents on the cost of a packet of cigarettes

    Spending cuts

  • Total cuts in 2011 €3.2bn
  • €510 to be cut from integration budget over three years, new immigrants to pay more for compulsory courses
  • Up to €1bn from civil service wage moderation and other cuts
  • €700 from innovation budget
  • €440m from spending on childcare subsidies for parents by 2015
  • €120m from work schemes for the handicapped
  • €190m from workplace reintegration schemes in 2012
  • Walking aids for the elderly no longer covered by health insurance
  • Contraceptive pill for over 21s and dental care for 18 to 21s no longer insured
  • Teachers salaries to rise by no more than inflation to 2015
    Extra spending

  • Crisis-related loan guarantee schemes for industry to continue to end 2011
  • €130m on help for the poorest families with young children
  • €24m to reduce the perinatal death rate
  • €230m in subsidies to stimulate small firms
  • €200m more for development aid, maintaining 8% of GDP standard
    New initiatives

  • The sale of lightbulbs over 45 Watt to be banned
  • Anti-cartel body NMa to get more powers
  • 500 new neighbourhood police officers and 500 forensic lab assistants to be appointed
  • 200 km of new roads to be built
  • Fines to go up 15% in 2011 and a further 20% in 2012
    Collated from the Volkskrant, ANP, Telegraaf and Financieele Dagblad

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