The Dutch economy is set to grow 1.7% next year, according to government documents leaked to the Telegraaf and RTL news ahead of next week’s budget.

The growth, earlier estimated at 1.6%, is due to an increase in spending power, which will rise to 1.8% next year, the latest forecasts by the government’s macro-economic forecasting agency say.

News of the spending power boost leaked last week when RTL said the government is poised to spend €1bn boosting disposable incomes.

‘The government’s finances are more balanced. In all, the Netherlands has emerged from the crisis in a strong position,’ RTL quotes the latest leaked documents as saying.

According to the Telegraaf, inflation is set to rise to 0.5% next year and the budget deficit will also be 0.5%.

Next week’s budget is the last by the present coalition government. The Netherlands will have a general election in March next year.