The budget deficit will rise to 68 billion euros this year, according to an initial estimate by the cabinet. As a result, the corona measures ensure a significant adjustment compared to the previously expected surplus.
During Budget Day, it was expected that a surplus of around 2 billion would be achieved in 2020.
Public debt continues to rise to 63.1 percent of GDP (EUR 491 billion). This is stated in an estimate that Minister Wopke Hoekstra of Finance has sent to the House of Representatives.
Prime Minister Mark Rutte responded to the estimate on Friday afternoon, speaking of an astronomical deficit. “This is due to the support packages offered. We were able to distribute them because we have built up money for thirst in recent years.”
In April, Hoekstra expected a deficit of 92 billion euros in the Spring Memorandum. This deviation is mainly due to tax deferral. Many citizens and businesses were deferred to pay taxes because of the corona crisis. They still have to pay this for fiscal year 2020 next year.
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