Economic future looks good, but ‘old normal not back yet’

The near future looks remarkably good in the economic field. Thats what demissionary Minister Hoekstra said when offering the Million Note to the House of Representatives next year. According to estimates by the Central Planning Bureau, the economic recovery after the corona crisis continues slightly stronger than previously thought. The CPB is projecting an economic growth of 3.5 percent next year and 3.9 this year.

According to Hoekstra, the relatively good figures are mainly attributable to the adaptability of entrepreneurs and society as a whole and to the support packages.โ€ In the Chamber, he also pointed out that during the corona crisis, many people helped others, not out of their own interest, but because they wanted to be there for each other.

See how the Minister of Finance offered the budget to the House of Representatives:

He did acknowledge that the favourable figures do not say all about the lives of individual people, who, for example, have lost someone due to corona or lost their income. โ€œFor them, the old normal is not back,โ€ Hoekstra said.

According to the cabinet, the most profound phase of the corona crisis is behind us, but risks remain. That is why 2 billion will be invested in the fight against corona for the time being next year.

The government considers labour market developments more positive than expected. Nearly 70 percent of 15 to 75 year olds are working, a new record. Unemployment will rise slightly next year, and national debt will fall. The budget deficit is estimated at 6% for this year and it is expected to fall to 2.4% next year.

On average, the purchasing power of the Dutch remains the same or they are at least advancing (0.1 percent). The government has not taken any major measures in this area, but it says it wants to show โ€œa balanced purchasing power imageโ€. The exact consequences per person depend on the individual situation.

Climate, Housing, Crime

Hoekstra said in the House of Representatives that a demissionary cabinet is normally reluctant, but some problems cannot wait. For example, the cabinet allocates an additional EUR 7 billion for climate policy (partly intended to comply with the Urenda verdict on CO2 reduction). For example, much more is being spent on a renewable energy grant.

The cabinet also reserves additional money for housing construction (to accelerate the construction of new homes), defence (including additional ammunition), combating undermining crime and the security of individuals. The social legal profession is also getting more. In addition, additional resources go to burden relief, particularly for low-income people, earners and families.

Premium health costs rise slightly

The cabinet expects the basic insurance premium for healthcare costs to go up about 2.75 euros per month next year. The insurers will set the final premiums later this year. The premium increase is compensated for lower-income people through the care allowance. The deductible remains 385 euros.

The additional investments in new measures are partly financed by the money that was actually intended to pay the abolition of dividend tax.

When that abolition did not go ahead, the idea was to reserve the money for business, but that too is off the job.