Government deficit decreases by higher revenue – NU.nl

The budget deficit has further decreased to 0.8 percent of gross domestic product (gdp), reports the Central Bureau for Statistics (CBS) on Friday.

The Central Planning bureau (CPB) for the whole of 2016 from a deficit of 1.1 percent. That would still be a decrease in mean compared with the deficit of 1.9 percent over the whole of 2015.

According to the European rules should the general government deficit may not exceed 3 percent of gdp, or the total size of the economy.

Contributions

The increase of the revenue of the government was mainly due to the received social contributions. Also, the corporate income tax and vat brought in more money in the coffers. There were lower aardgasbaten opposite as a result of the reduced production in Groningen.

The national debt came mid-year to 437 billion euros. That is 63,7 percent of gdp, is 1.4 percentage points less than at the end of 2015. The European standard is 60 percent. That the debt despite the deficit by almost 4 billion euro decreased, is due to income from financial transactions, including the ipo of insurer ASR.

Need

By the positive economic developments and the improvement of the state finances also take the financing needs of the government. The agency of the ministry of Finance about the issuance of debt charge for this year to 65,2 billion euro. In June, it was 9 billion euro.

Next year the borrowing requirement correctly, securely, to an estimated 80,7 billion euros. This is primarily because more maturing loans must be repaid this year.

By: ANP