ANPP Prime Minister Rutte and Deputy Prime Minister Kaag in the corridors of the House of Representatives
NOS Nieuws•vandaag, 19:16
The outgoing cabinet lacks a structural vision on how to budget to meet challenges in the future. This is what the Council of State says advice on the 2024 Budget Memorandum.
According to the Council, these challenges for the coming years are major; the outgoing cabinet should “use the coming year” to map out the difficult choices that need to be made in the field of income policy and climate.
For example, the government is now coming up with an approach to combat poverty, but according to State Councilor Richard van Zwol, a long-term analysis is missing: “Are we now going to combat an increase in poverty for 25 years with short-term purchasing power measures?”
According to him, the government should look into the question of why ordinary people cannot earn an ordinary sandwich.
More coherence
And his fellow State Councilor Frank de Grave: “If you have to come up with a purchasing power package for the poorest and there are concerns about middle incomes, you can expect more coherence between the tax plan and budget rules.” He now thinks it seems too “snappy” and he especially misses a “coherent story”.
In the field of climate, according to the Council of State, there is a lack of insight into “climate-related tax measures”. It is not clear how much the climate problems will cost in the coming years, but it is in any case too unclear where the money will come from to tackle problems.
According to the Council, climate change is one of the largest social challenges in the coming years. This will structurally change government finances.
That is why costs must also be given a more structural place in the analyzes for the sustainability of the budgets, according to the Council.d
The government has announced funds for climate measures, although the laws for this have not yet been adopted by both Houses. This leaves it unclear what the impact is on the sustainability of public finances.
Budget deficit
The Netherlands will not be in the danger zone with its budget deficit before 2023 and 2024, but from 2025 it will no longer comply with European rules. The economic growth rate can also be disappointing.
If that is the case, a new cabinet will still have to come up with reforms. These reforms will never produce results overnight. The Council of State believes that it is therefore wiser to now focus on more structural choices.
2023-09-19 17:16:39
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