Budget deficit rising

29th November 2011, Comments 0 comments

This year’s budget deficit is expected to rise to 4.5 of GDP, an increase of 0.3 percent compared to the figures presented by the cabinet on budget day in September.

The new estimates are included in the annual fall budget revision Finance Minister Jan Kees de Jager submitted to parliament on Tuesday.

In June, the Bureau for Economic Policy Analysis still predicted a 3.7 percent deficit, whereas the cabinet on budget day 2010 expected the deficit would not exceed 4 percent.

The national debt will also rise this fiscal year, to 65 percent of GDP. The deteriorating figures are mainly the result of decreasing tax revenue.

Government spending has gone up as a result of setbacks in social security 400 million euros and in care 1.2 billion. The cabinet has taken measures to ensure total spending does not exceed the agreed ceiling.

© Radio Netherlands Worldwide

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