Sunday, May 16, 2010

Never Before Such a Gap Between National Budget and Performance

The financial report of the government over 2009 shows that never before has there been such a gap between the National Budget and the actual performance. The Dutch economy shrunk in 2009 by 4% where a growth of 1% was predicted. A budget surplus of 1.1% of the GDP was predicted. Yet there was a deficit of 5.3%. National debt increased by 101 billion Euro from almost 40% of GDP to 61%. 37 billion Euro was due to the budget shortfall and 63 billion Euro was due to intervention in the financial sector, such as help to banks and insurers. The Minister of Finance JanKees de Jager (Christian Democrat) attributed this to the international financial crisis.

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