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The Dutch centre-left government presented its 2008 budget on Tuesday and forecast a surplus in the public accounts for the next four years.Finance Minister
"With a booming economy, the Netherlands is one of the most prosperous countries in the European Union. Despite recent unrest in the financial markets the economy will remain strong in 2008 and will provide further growth of employment," the finance ministry said in the budget. 
Wouter Bos
In 2007, the economy is expected to grow by 2.75 percent and in 2008 growth in gross domestic product (GDP) is forecast at 2.5 percent.
In 2008, the Dutch state is counting on a budget surplus of 0.5 percent of GDP that will rise to 0.6 percent in 2009, 0.7 percent in 2010 and reach 1.0 percent in 2011.
Inflation will rise mildly from 1.75 percent this year to 2.0 percent in 2008, the government said.
"It is a fact there is tension on the labour market and that always has an increasing effect" on inflation, Prime Minister Jan Peter Balkenende said.
The national debt will be at 45 percent of GDP in 2008, calculated according to European Union norms, and the government plans to reduce it further to less than 40 percent in 2011.
In the eurozone, the average national debt level is 65 percent of GDP.
The Dutch budget is traditionally presented on the third Tuesday in September when Queen Beatrix reads the address from the throne to present the government's plans for the next year.
"To foster a cleaner and more efficient economy, the government is raising taxes on consumption and on environmentally harmful activities," the queen said.
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