2025 Netherlands budget
| Government | Schoof cabinet |
|---|---|
| Finance minister | Eelco Heinen |
|
‹ 2024 2026› | |
The 2025 Netherlands budget is planned to be presented to the States General on 17 September 2024, a day also known as Prinsjesdag. It will be the first budget of the Schoof cabinet and of Minister of Finance Eelco Heinen.
Background
[edit]A general election was held in November 2023 that resulted in the swearing in of the right-wing Schoof cabinet in July 2024, referred to by the coalition parties as an extra-parliamentary cabinet. It consisted of the Party for Freedom (PVV), the People's Party for Freedom and Democracy (VVD), New Social Contract (NSC), and the Farmer–Citizen Movement (BBB). In their coalition agreement, the parties agreed on the cabinet's policy agenda and on its finances.[1] Several financial setbacks arose afterwards, as the Supreme Court ruled that the manner in which the wealth tax was levied was unfair and as the intended sale of the German division of TenneT, a government-owned transmission system operator, failed.[2]
In August 2024, the Bureau for Economic Policy Analysis (CPB) published its economic projections in August 2024, concluding that government finances would deteriorate and that the budget deficit would grow. The cabinet met after summer recess to draft its budget.[2] In late August, leaders of the coalition parties met with the cabinet at the Ministry of Finance for two days to discuss the 2025 budget.[1] Even though the talks led to some changes, participants denied that they could be characterized as negotiations due to the supposed extra-parliamentary nature of the cabinet.[1][3] The PVV, VVD, NSC, and BBB voiced their support for the budget on 30 August 2024.[4] The budget was approved by the Council of Ministers the next day and sent to the Council of State for advice. National media outlets reported the budget differed from a few of the proposals in the coalition agreement: a compensation scheme for school books would be introduced as a result of an increase in the sales tax for books, and the charitable contributions deduction would be less severely scaled back. Furthermore, the tightening of the expat tax break would be rolled back, funding for free school means would remain intact, and funding would be allocated for an early retirement scheme for physically demand occupations.[3]
References
[edit]- ^ a b c "Kabinet en coalitiepartijen dicht bij akkoord over plannen Prinsjesdag" [Cabinet and coalition parties close to reaching agreement about plans Prinsjesdag]. NOS (in Dutch). 28 August 2024. Retrieved 31 August 2024.
- ^ a b "Coalitiepartijen zijn het na marathonoverleg eens over begroting voor 2025" [Coalition parties in agreement about 2025 budget after lengthy talks]. NU.nl (in Dutch). 30 August 2024. Retrieved 1 September 2024.
- ^ a b "Gratis schoolmaaltijden blijven, aftrekregeling giften minder versoberd" [Free school meals will stay, charitable contribution deduction less affected]. NOS (in Dutch). 30 August 2024. Retrieved 31 August 2024.
- ^ "Steun coalitie voor begrotingsplannen kabinet na 'ingewikkeld' nachtelijk overleg" [Coalition support for cabinet's budget plan after 'complicated' discussion at night]. NOS (in Dutch). 30 August 2024. Retrieved 31 August 2024.