For example, the government purchased all sorts of services and goods to combat the coronavirus epidemic, such as tests, vaccines and call centres. The lower expenses were offset by far higher government consumption almost 18 billion euros up on the previous year. High-interest debts from the past were repaid and replaced by lower-interest debts. Interest expenses continued to fall in 2021, despite rising public debt. This was mainly related to lower expenditure on the Temporary Emergency Measure for the Preservation of Jobs (NOW). Government subsidies fell by 4.5 billion euros, after a steep rise in 2020. A year earlier, expenditure still rose by nearly 40 billion euros, mainly as a result of the government's support measures to help companies, institutions and families through the coronavirus crisis. This is less substantial than the revenue increase. In 2021, government expenditure rose by almost 18 billion euros. Non-tax revenues increased mainly due to higher natural gas revenues. Corporate tax revenues increased by almost 9 billion euros or 40 percent. In 2021, VAT brought in almost 6 billion euros more than a year earlier. They still fell slightly in 2020, due to the coronavirus crisis. Revenues from taxes and contributions rose by more than 22 billion euros or 7 percent. Last year, the government saw an increase in revenue by more than 25 billion to 377 billion euros. Revenue up 7 percent due to economic recovery The debt (54.3 percent of GDP) already fell below the European 60-percent ceiling at the end of 2020. At 3.7 percent of GDP, the deficit over 2020 was still exceeding the maximum. However, the Dutch government was able to keep both deficit and debt below these limits in 2021, despite the coronavirus support measures. Due to the exceptional circumstances, the European Commission temporarily suspended the European budget rules. The European convergence criteria allow a maximum deficit of 3 percent of GDP and a maximum debt level of 60 percent of GDP. The general government balance and government debt are the main indicators for the current public finance conditions. Statistics Netherlands (CBS) reports this on the basis of initial, provisional figures on government finance over the year 2021. Government debt rose to 448 billion euros in 2021, equal to 52.1 percent of GDP. This is equal to 2.5 percent of gross domestic product (GDP). In 2021, the Dutch government recorded a budget deficit of almost 22 billion euros.
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