On the other hand, the government's support measure to extend payment of taxes also led to a higher debt in 2021.What do corruption, resource overexploitation, climate inaction, vaccine hesitancy, traffic congestion, and even cancer metastasis have in common? All these socioeconomic and sociobiological phenomena are known as social dilemmas because they embody in one form or another a fundamental conflict between immediate self-interest and long-term collective interest. The government did not have to take on new debt to cover the deficit. The deficit in 2021 could be partly financed with this. In addition to the bond premium, the well-stocked cash position at the end of 2020 also played a role in the low debt increase in 2021. According to European budget rules, only the principal (face value) of the bonds counts when determining the public debt and not the value of the debt at issuance, which includes premium or discount. The gap is largely explained by the premium on the issuance of government bonds. This increase in debt is lower than the budget deficit of 22 billion euros. The debt in euros rose by 13 billion, to 448 billion euros. Over the past decade, the debt ratio was only lower at the end of 2019 than at year-end 2021. This sharp drop is due to the fact that in 2021 nominal GDP rose considerably faster than the debt in euros. This is 2.2 percentage points lower than at the end of 2020, when the debt ratio stood at 54.3 percent. Government debt as a percentage of GDP, also referred to as the gross debt ratio, stood at 52.1 percent at the end of 2021. The burden of this on the government amounted to almost 3 billion euros in 2021.ĭebt ratio down to 52.1 percent, despite pandemic The government has compensated health insurers for the extra costs of the coronavirus pandemic in 20. The State transferred 1 billion euros more than in the previous year. In 2021, contributions to the EU increased by more than 10 percent. Employee remuneration in the public sector went up by 4 percent in 2021.Ĭash benefits rose by nearly 3 percent or more than 2 billion euros, mainly due to AOW (National Old Age Pensions Act) costs and benefits. 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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