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Dutch budget deficit will drop to 1.8% next year, says Brussels

06-05-2014

2014-05-06

The Netherlands will meet Brussels' budget deficit targets this year, according to the latest official European economic forecast. The forecast states the budget deficit will rise slightly to 2.8% in 2014, as cuts in natural gas production lead to some revenue losses. Under eurozone rules, the deficit should not exceed 3%. 'However, non-gas government revenues are expected to increase in line with the improving economy, and structural savings of around 0.1% of GDP should be realised in the healthcare domain,' the report says. The economy is forecast to grow 1.2% this year and 1.4% in 2015. In 2015, the deficit will drop to 1.8% as 'domestic demand recovers' and 'higher revenues from labour and indirect taxes are projected to boost revenue'. The decentralisation of social security and long-term care will also have an impact, the report states.

Source: http://www.dutchnews.nl/news/archives/2014/05/dutch_budget_deficit_will_drop.php

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