The Dutch Cabinet is expected to not deliver the €4.5 billion in tax relief that it had promised for the next year. A source close to the budget negotiations told RTL Nieuws that the tax reductions will fall short of the promised amount by a substantial amount. Additionally, the increase in social benefits will only be about 1 percent, instead of the anticipated 2.1 percent. The Cabinet’s main focus will be to reduce the budget deficit, rather than fulfilling its initial promises. This decision could have been influenced by the Bureau for Economic Policy Analysis (CPB) presenting its preliminary Macro Economic Outlook for 2025, which suggested that the Dutch economy would grow by 0.6 percent this year and 1.6 percent next year. The CPB also stated that purchasing power should improve by an average of 2.5 percent this year and 1.1 percent in 2025. The first Cabinet of Prime Minister Dick Schoof is now attempting to adjust its measures to improve household position in line with the CPB’s report. The contentious atmosphere during last week’s marathon budget negotiations, particularly between NSC leader Pieter Omtzigt and former Prime Minister Mark Rutte, may have also influenced this decision.
Views: 0