The main points of the 2015 budget

DutchNews.nl, Tuesday 16 September 2014

Minister Dijsselbloem (NOS/ANP)

Few major new policy measures were announced by ministers on Tuesday and much of the key economic information had already been leaked. Here is a summary of the main points:

Taxes and income  

• Spending power will rise by an average 0.5%
• Single parents will see a 10% increase in spending power, single breadwinner families on average incomes a 3% drop.
• Fewer tax breaks for the elderly. Four in 10 pensioners will be worse off.
• Economic growth to reach 1.25%
• Budget deficit to hit 2.2%, well below the 3% eurozone limit
• Unemployment to drop from 650,000 to 605,000
• The lowest tax band (up to €16,645) will be cut by 0.25% to 36.5%, although this is effectively a 0.5% increase

Health and benefits 

• Healthcare own risk to rise from €360 to €375
• Healthcare insurance will rise by an estimated €10 a month
• Healthcare benefits for those on very low incomes will rise
• Income dependent health insurance premium for pensioners and self-employed to rise
• Parents who lose their jobs will keep childcare benefits for six not three months

Security and foreign policy

• Extra spending on defence: €350m a year to 2018
• Extra spending on emergency aid: €570m
• Extra spending on regional refugee policy: €375m
• Extra spending on AIVD security service: €75m
• Foreign affairs ministry to ‘maintain or strengthen’ embassies in the Middle East and unstable regions close to Europe

Housing 

• 6% VAT tariff on home repairs extended to July 2015
• The point system for determining social housing rents will be revised to take property values more into account.
• People who move house but can’t sell their first home can deduct the cost of both mortgages from tax for three, rather than two, years

Other measures 

• €200m to stimulate innovation
• Tax relief on environment-friendly cars to be cut
• Petrol and diesel prices to rise in line with inflation
• €20m for the Dutch film industry to strengthen its international position
• Civil service and public sector salaries to rise in line with market developments after a multi-year pay freeze
• King Willem-Alexander to get a €6,000 pay rise, taking his income to €823,000, queen Maxima to get an extra €2,000.

King Willem-Alexander addresses members of both houses of
parliament with queen Maxima at his side. Photo: Nos still

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