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Flemish Government in Final Push to Secure €1.5 Billion for Budget Balance by Monday (www.tijd.be)

submitted 2 months ago by iii@mander.xyz to c/Belgium

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Summary:

The Flemish government is in the final stages of negotiations to finalize its budget by Monday, aiming to find €1.5 billion to maintain a balanced budget by 2027. The discussions, which resumed at 5 PM after a night of deliberation, have reportedly made progress, with key proposals on the table, including an increase in the healthcare premium and a truck toll. The government is under pressure as the projected deficit for 2026 has risen from an agreed €2.7 billion to €4.2 billion, necessitating urgent measures to address the shortfall.

In what the N-VA party describes as the "most ambitious interim budget ever," all expenditure and revenue items are being scrutinized. The government is considering delaying or spreading out certain expenditures, such as reforms to inheritance tax, increased funding for welfare, and initiatives to promote Dutch language skills in education. Additionally, new revenue sources may include making the inheritance tax reform budget-neutral by excluding real estate from tax-free gifts to family businesses and implementing a wealth test for social premiums.

Another potential revenue stream could come from increasing the healthcare premium, currently set at €64 for approximately 4.7 million Flemish residents, which supports over 300,000 individuals in need of care. There are also discussions about raising the truck toll, particularly targeting polluting vehicles. If an agreement is not reached by Monday at 2 PM, when Minister-President Matthias Diependaele is scheduled to present his September statement in the Flemish Parliament, the speech will need to be postponed.

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