The main points of the Dutch caretaker government’s budget

Finance minister Eelco Heinen presents the budget to parliament. Photo: Remko de Waal ANP

The government’s spending plans announced on Tuesday do not include any major new policies or strategy shifts, given the cabinet is acting in a caretaker capacity.

Here is a list of the main points

Economy

  • The national debt will reach 44.9% this year and is projected to rise to 48.7% by 2028.
  • The budget deficit will hit 2.9% next year, just under the Brussels limit of 3%.
  • Inflation is forecast to fall to 2.3% next year – if economic policy is unchanged.

Personal finance

  • Spending power will rise by an average of 1.3% next year. People in work will have 1.2% more to spend, and pensioners 1.5%.
  • The first income tax band will go up slightly, the tax discount for workers will largely offset this.
  • Ministers expect health insurance premiums to rise by around €3 a month, although the actual increase will be determined by health insurance companies themselves.
  • The “own risk” element in healthcare will remain €385 per year per adult.

New spending

  • The flight tax on intercontinental flights, currently €29.40, will be based on distance travelled from 2027, rising to € 70.86 for the longest journeys.
  • More money will be spent on reducing prison overcrowding – €35 million from 2028 and €50 million from 2031.
  • €2.6 billion extra to tackle the nitrogen pollution crisis via a scheme to pay farmers to close their businesses, more money for innovation and subsidies for nature improvement projects.
  • An additional €430 million will be invested in boosting the tech industry in the Netherlands.
  • €30 million is being allocated to legal aid law.
  • Almost €1 billion will be invested in new offshore wind farms.
  • € 79 million to build “flex” housing for people urgently needing homes, including refugees with residency permits.
  • €12 million to buy bodycams for NS railway staff.

Other policy issues

  • Planned cuts to the public transport budget are being delayed for a year.
  • A proposed cut to a programme aimed at boosting equality of opportunity in schools will be scrapped.
  • Plans to introduce cheaper “red” diesel for farmers have been abandoned, saving €146 million.
  • The age limit to claim housing benefit is being reduced from 23 to 21.
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