New windfall eats further into deficit

24th February 2006, Comments 0 comments

24 February 2006, AMSTERDAM — Finance Minister Gerrit Zalm expects to cut the budget deficit for 2005 to 0.5 percent due to higher-than-expected windfalls.

24 February 2006

AMSTERDAM — Finance Minister Gerrit Zalm expects to cut the budget deficit for 2005 to 0.5 percent due to higher-than-expected windfalls.

The State's coffers received EUR 3.5 billion more than previously expected, according to internal calculations by the Finance Ministry.

Last month Zalm announced the State had taken in EUR 2.5 billion more than budgeted for, cutting the deficit for 2005 to 0.7 percent.

Ministers are expected to discuss the news of the total of EUR 3.5 billion extra during Friday's Cabinet meeting. Last November, Zalm's officials announced a EUR 3 billion windfall, mainly due to higher gas receipts.

This time the extra money is the result of higher tax receipts and lower deficits at the local government level.

[Copyright Expatica News + ANP 2006]

Subject: Dutch news

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