Decrease in public debt continued in first half of 2024

The Dutch government’s debt-to-GDP ratio was nearly at its lowest level in the past 30 years by mid-2024. It dates back to the end of 2007, when the debt ratio stood at 42.8 percent. The euro-denominated debt has increased by nearly 80 percent since 2007. However, the size of the economy also increased by nearly the same amount, leading to little increase in the debt-to-GDP ratio. In the period between 2007 and now, the government has suffered two major crises - the credit crisis and the coronavirus crises - which saw debt rise rapidly in a short period of time.

Surplus of 8 billion euros in first half year

The Dutch central government achieved a surplus of nearly 8 billion euros over the first half of 2024. That is higher than the surplus of nearly 3 billion euros over the same period in 2023. The government ended the year with a deficit of nearly 4 billion euros, or 0.4 percent of GDP, over the whole of the previous year.

The 2025 Budget Memorandum assumes a deficit of 18.5 billion euros for the entire calendar year 2024, equivalent to 1.6 percent of GDP. To arrive at a deficit of 18.5 billion euros for all of 2024, the government will have to spend 26 billion euros more in the second half of this year than it receives in revenue. Among other things, the Netherlands Supreme Court's rulings on Box 3 and on a German real estate fund could have a large impact on the balance for the second half of 2024. These reparations in the government budget were allocated to 2024 in the Budget Memorandum.

Revenues increased by 15 billion euros

In the first six months of 2024, government revenues increased by nearly 15 billion euros year on year. Taxes and national insurance contributions accounted for 13 billion euros of that increase. Other revenues rose by nearly 2 billion euros, mainly due to increased sales, while expenditure increased by nearly 10 billion euros. The top risers were compensation of employees, over 4 billion euros or 10 percent, and social benefits, nearly 9 billion euros or 8 percent. On the other hand, subsidies and other transfers decreased sharply, by a total of 8 billion euros. That was mainly due to the expiration in 2024 of measures taken in 2023 to mitigate the impact of high energy prices, such as the price cap.

Adjustment of the government balance for 2022

With new information becoming available, CBS has adjusted the government balance for 2022. This was 0.8 billion euros higher due to new data on revenues derived from the solidarity contribution. The 2022 balance is now slightly positive, while the earlier CBS calculation showed a small deficit. The solidarity contribution, a one-off levy imposed on fossil fuel companies in 2022, is allocated to 2022 in accordance with European guidelines, while the revenues were received by the Tax Administration of the Netherlands in 2023 and 2024.

Revisions of national accounts and government finance

Due to the revision of national accounts and public finance statistics, the data in this news release differ from the data reported in previous quarterly news releases on public finances. For example, due to a revision of GDP, the debt-to-GDP ratio for historical years has been adjusted downwards. Revenue and expenditure have also been adjusted upward due to method changes.