A Peek Into the Netherlands’ 2024 Budget Priorities
In late September, the Netherlands presented its 2024 budget, totaling 433.6 billion euros. The primary focuses are to enhance purchasing power and protect households from falling into poverty to secure the future for the most vulnerable. As a consequence, individuals with normal to high incomes may experience tax increases. Read more below about how the budget is divided.
- 27 September 2023
- Posted by: Expat Management Group
- Category: Insights
A dedicated budget of 2 billion euros has been set aside to help reduce poverty. This plan includes increasing housing- and child benefits while providing assistance to lower-income households with their energy expenses. Following a challenging year, many low-income families found themselves struggling with rising energy costs and inflation. According to the Bureau for Economic Policy Analysis, failure to address purchasing power concerns could result in poverty affecting over one million individuals nationwide.
In response, the government plans to offer additional benefits to approximately 6,500 households that are about to fall below the poverty line for the next four years. Additionally, the government will continue its ongoing investments in major sustainability projects for our future. Notably, a large portion of the funds allocated to the anti-poverty plan will be distributed into child benefits, increasing up to 750 euros for the first child and 883 euros for the second.
However, to fund the 2 billion euros allocated for the poverty reduction plan, adjustments in taxation have been introduced. This means that higher-income earners will be subject to taxation on a larger portion of their earnings. Additionally, taxes on alcohol and cigarettes will be increased taking into consideration health-related reasons.
As the Netherlands is struggling with the housing crisis, considerable investment has been assigned to aid municipalities in building more affordable housing faster. Additionally, there will be a notable increase of over 30 euros per month in rental allowances.
Regarding healthcare, the government anticipates an approximate monthly increase of 12 euros in healthcare premiums. The exact amount, however, will be determined by health insurance providers at the end of 2023. Meanwhile, the healthcare allowance is set to reduce, with a maximum limit of 127 euros per month. In addition, 345 million euros will be dedicated to Housing, Support, and Care for the Elderly, marking the highest budget allocation in this category.
The primary focus of this subject is on enhancing extracurricular activities and support for students, particularly those in need. This means assistance with homework, technology lessons, and sports programs. A huge amount is also allocated to provide free school meals to those students. Furthermore, there will be investments aimed at improving online library networks.
Traffic & Transport
About 4.6 billion euros will be spent to maintain and renovate bridges and viaducts across both rail and road networks. Besides that, increased funding is allocated to create smarter charging stations for passenger cars and trucks.