Finance Minister Sigrid Kaag handed over the budget of millions to the House of Representatives on Tuesday. A selection of plans for the coming year, mainly dominated by the repair of purchasing power.
Large and historic purchasing power package
The government is allocating over € 17 billion more to improve people’s financial position over the next year. Due to skyrocketing inflation, more and more families are in trouble.
The minimum wage increases by 10 percent. Coupled benefits, including AOW, will also increase.
In addition, the housing allowance will increase slightly more on a structural basis and the health care allowance will be one-off. The budget for children will also increase. In addition, workers will pay slightly less income tax and increase the employee’s tax credit.
Price ceiling for energy and other energy measures
It is not officially part of the budget of millions, but the government has also announced the details of the energy price cap on the Budget Day. This will give an average family a discount of 190 euros per month.
Furthermore, the reduction of excise duties on fuels will be maintained. For lower-income families, there will again be an energy surcharge of € 1,300. Some of these municipalities are still allowed to pay this year.
Extra money for MBO and temporarily higher scholarship students
The cabinet will spend another 350 million euros per year on MBO. This is € 150 million more than previously announced. In particular, this should increase equal opportunities, improve the connection to the labor market and improve quality and stimulate innovation.
For students living away from home, the basic grant will increase once in the next year. The monthly amount will be greater than 165 euros in the 2023/2024 academic year. They will receive the additional amount on top of the scholarship they already receive of around 280 euros, as the basic scholarship will be reintroduced into higher education.
Anticipated the reduction of the rent for the social tenant
From July 2023, low-income tenants in a housing consortium can already receive a rent reduction of an average of 57 euros per month. The rent reduction was originally supposed to take effect in 2024, but was brought forward by a year.
More money for the defense
It was already known, but the government will spend more money on defense in the next year. Due to the war in Ukraine, the House of Representatives expressed a desire to accelerate compliance with the so-called NATO standard.
Healthcare spending for the first time above 100 billion euros, health premium on the rise
In 2023, a total expenditure on health care is projected to be 103 billion euros. That’s 6 billion euros more than this year. Due to the increase in these costs, the health premium will also rise, the government predicts. Probably with around 10-11 euros per month. It is up to the health insurers themselves to determine the premium by the end of the year.
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